However to make it work in skype I needed to execute skype beta 2.2.0.35 through the following command
LD_PRELOAD=/usr/lib/libv4l/v4l1compat.so /usr/bin/skype
If this does not work, than u can try to use:LD_PRELOAD=/usr/lib/libv4l/v4l2convert.so /usr/bin/skype
If u don't already libv4l installed, than u can install it as follows:
sudo apt-get install libv4l-0