I just updated my Skype on DS7 (I'm still on Froyo) and it now allows video calling. However, it uses the back camera!!! I don't know how to configure it to use the front facing camera. Please post if you know how to switch the video to the front camera.
I cannot figure out a way to Skype either. You can see the person on the other end, but you cannot turn on the front camera so they can see you. I wonder if there is an app for that?