I have the same problem. Weird colors and very poor audio (On both ends). Verizon tells me it is a SKYPE problem and they need to fix. I have installed and reinstalled the program several times and get the same problem each time. I cannot understand why Microsoft in all the wisdom cannot fix this problem. Could it be that they are concentrating on their own windows OS system?
From my point of view (being a novice), it appears both Verizon and Skype (Microsoft) is giving us the runaround. Verizon blames Skype and Skype will not even reply to compaints. A really sick situation for the comsumer........
Christopher 7026 you are the God-blessed genius of the Skype Community! I have been sitting here at my computer in Manchuria (I am from Florida; why i'm here is another story)trying to figure out why my new Galaxy S3 super fancy expensive gizmo does not do video calling on Skype. I even researched downloads that are for much more primitive versions of Android. Low and behold, I follow your instructions: I first sign out of Skype. Then I go to "Settings," and then "Applications," and then find the Skype program. I select it and the data screen pops up. I do a "Force Stop," just like you said. I then push "Clear Data," and all data is gone. I then go back out of Apps, open up Skype, and login with Skype name and password. Eureka! I am video call enabled! I don't know WHAT the problem was. All I can say is Skype was loaded on at the store for me by the salesman. I did not load it myself. That should have no effect on anything, but just to let you know.
Dinner and drinks on me anytime you show up in Changchun. Thanks again. Mitchk97
Log out of Skype; go to apps, go to settings, go to Application Manager, make sure you select "All" once you are in App Manager; scroll down to Skype and select, select Force Stop, select Clear Data after that; go out of Apps and back to home screen, log in to Skype; if video icon appears after you are logged in then problem solved--good, cheap, and plenty!