SKYPE Video and Audio problems
This problem is common and depends upon the number of users logged into Skype.
Because the Skype server is in the UK, all VoIP transmission travel to and from each party goes via UK and depending upon the time of day and Internet traffic (there are millions of Skype users), it affects video and audio quality.
You can improve but not entirely eliminate this problem because video data uses a lot of available bandwidth and your friend may also experiencing the same problem with your video.
1. To reduce the amount of video data being transmitted, set the both of your cameras to e-mail size resolution 320X240.
2. If the video and audio quality are still bad, then both of you should turn off the video and just communicate using the voice. The voice quality will improve and not break up.
I know it is nice to see the other person, if possible then try other times of the day/night when the video and voice quality due to less Skype on the Internet and try to communicate during these times.
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