Yes, it's around 0.3 MP, and all of Nokia's (and Sony Ericsson's, and Motorola's) phones with video calling capabilities have a VGA user-facing camera, and it works pretty decently, so let's not be so quick to blame the camera.

There is no point to having a 1.3 or 3.2MP camera for video calls because the amount of bandwidth that would be needed to stream over a mobile data connection (using lowest common denominator / weakest link here) would be unfeasible.

Most webcams are VGA or 1.3MP at best (with the exception of Apple's iSight), and Nokia has made it clear that the web cam is just that -- a web cam, not meant for taking great photos.

EDIT:

This pretty much confirms that the iSight is able to get away with so much for several reasons (see highlighted), plus the fact that the software supports up to 30fps. I seriously doubt that the N800 has the video capabilities for recording at that framerate

"But iSight doesn’t just look good, it makes you look good, with the highest quality video of any chatting solution. A custom-designed, three-part lens consists of two aspherical elements that focus on a 1/4-inch CCD sensor with 640x480 (VGA) resolution. The camera’s lens aperture is a wide F/2.8, allowing it to collect more light than most webcams. iSight also offers a far wider range of shutter speeds than most other cameras. Put it all together and iSight delivers smooth, top-quality, full-motion video at 30 frames-per-second in 24-bit colour. "

http://www.appleme.ae/ara/apple/hardware/isight/