15-09-2011 22:40 - edited 15-09-2011 22:42
This problem seems to be all over the internet but no solutions posted?? Come on Skype sort it!!
Same problem! Worked when I called a friend on his iPhone with Skype. I have an iPad 2 and when I called home same issue you describe. I see myself, stuck on initiating video. Other side could hear and see me. I just had audio on my side. Stuck on 'initiating video'.
I had the exact same problem from one iPad 2 to another iPad 2; one was showing video and one was 'initiating video'. I deleted Skype, and then downloaded it again from the App store. It worked!