I agree, Skype is really something. A few weeks ago I looked at it for my wife, who regularly has to make conference calls to London and some other european locations. With the software and a very inexpensive webcam (on both ends of the call) you can have live videoconferencing FREE. And the fidelity of the audio and the video is amazingly good with a decent broadband connect.
My wife felt (and I agree) that the call was good enough, but being able to SEE the person you are talking to is really the dramatic change in the communication's effect. Especially when you have not met them face-to-face.
We think it's a terrific innovation.