"Web camera" works much better now, but anyone got skype video to work, I get all the options see my dodgy face on n900 but nothing on client and no video coming from client, skype shows me as video available though.
Looks like I may be in trouble with google video, as I suspected (not nokias fault there) as not having a windows machine I get some error about unsupported codec which is a real bummer.

after installing codecs gtalk video works fine (gstreamer-bad etc)
skype is a bummer though...