I installed Ubuntu 12.04LTS trough Wubi on Win7. Later have installed Skype 4.1. When I make a video call I can hear and see the other person fine, but when I start my camera, the image of the incoming video call starts flashing between blue and normal video (the same for my mirror image in the little square). The other person sees me fine.
I use Intel 82852/855GM Integrated Graphics Device if that is relevant anyhow.
I found that people have same problem, but solution is found. More information in Skype bugs on launchpad.