Many thanks to Doruletz and grndplane
(1) Install Skype http://forums.linuxmint.com/viewtopic.php?f=141&t=54821
(2) Install Video4Linux Control Panel (v4l2ucp) either via Terminal (sudo apt-get install v4l2ucp) or via Software Manager
(3) Run "v4l2ucp" from a Terminal (sudo v4l2ucp)
(4) From the top bar, select 'preview'.
(5) Select 'configure preview'.
(6) In the 'application to use line' replace mplayer with Skype.
(7) Click 'OK" and close the sub-menu.
(8) In the preview menu, select "start preview"
(9) This will start your Skype program. Sign in with your Username and Password and you are ready to go with Video Calls (just to make sure everything works, test your video - from Skype menu go to Options and Video Devices)"
Add step 10 to this list
(10) Create Skype Icon and in the command box put "env LD_PRELOAD=/usr/lib/libv4l/v4l2convert.so skype" without the quotes.
This worked for me on both a netbook and a desktop.
It worked for me with a HP Pavilion dv2000
good health guys