The latest update to Skype's Android application has just been rolled out and a big part of its goodie delivery is two-way video calling. Only a quartet of phones are supported right now: Google's own Nexus S, HTC's Desire S, and the Xperia Neo and Pro from Sony Ericsson, all handsets that shipped with Android 2.3 installed. We suspect the rest of the Android world won't be far behind -- Thunderbolt users will surely be wondering why they're not included in this first batch -- but for now it's just that fearsome foursome. Also included in Skype v2.0.0.45 is a UI overhaul and support for SMS messaging, neither of which suffers from any handset restrictions. Hit up the Android Market on your phone (the web Market still lists version 1) to get at the latest software.
[Thanks to everyone who sent this in]
Update: We've just spent a little quality time with Skype 2.0 and its newfangled video calling. Notably, we couldn't get a video call to work between the Xperia Neo and a desktop version of Skype -- it was only possible to get video when calling between the Neo and the similarly compatible HTC Desire S. Once we did establish a connection, though, frame rates were smooth and buttery and the UI is simple and unintrusive yet offers quite a few functions. You can mute the call, choose between the front- or rear-facing camera, reposition the small window that shows your video feed anywhere on the screen, or -- with a double tap upon that window -- switch focus so that your own video output dominates the screen and your buddy's feed is relocated to the smaller preview. It's a great looking implementation of video calling, though we did only test it over WiFi, 3G performance may be materially worse.