I think I have the same issue as spanner.

I cannot see the option to make a Skype video call in my contacts, or an option to turn on video during a Skype call.

I am calling people who don't have a webcam. I thought I would still be able to send video, even if they can't send their own.

I've checked the settings in the receiver's desktop Skype, and it is set to "Automatically receive video from people in my contacts list", and I am in the contacts list.

It will be a real shame if this only works if the other person has a web cam.

Cheers,
Mark.