My experience is either low end or top end.

I would go for something that has a decently high framerate. Worst thing about webcam is jerking pictures. Gah to them.

Of course a Video Confercing Unit we put in a few months ago totalled about $20 000 USD. We got payed $150 USD to install it, roundabouts.

Skype should be fine, no reason to doubt it, but as always, wait for someone else who really knows what they are on about.