I read instructions here:
https://wiki.ubuntu.com/SkypeWebCams
where it says:
That is the case, output to 'X Window System (No Xv)' works but not 'X Window System (X11/XShm/Xv)'. Do I have an incompatible graphics driver? Where can I download it?Graphics Cards XV Skype and gstfakevideo
There are a couple of issues that create problems getting webcams working with skype. The gstfakevideo driver will probably get things working provided you have a suitable graphics card driver set up in xorg.conf
There is a highly significant thing called xv this is easily overlooked in the rush to get video working.
you need to install the gstreamer packages and try this out.
gstreamer-properties
go to the video tab and test your camera with the default settings if it doesn't work with the plugin 'autodetect' in 'Default output' change it to 'X Window System (No Xv)' then try again
if that works and 'X Window System (X11/XShm/Xv)' doesn't work then you are using an incompatible graphics driver.
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