Fring (App Store Link) has always been our favorite iPhone instant messaging appby far. Not only is it free, it was the first to allow Skype calls and SIP calls (Including Google's Gizmo5). IT was also one of the first to have Push Notifications and it works across many smartphone platforms.
Today's iPhone update allows video calling to Skype users via the iPhone's built in camera. We're not quite sure how this works yet (assuming you'll need a mirror or something to watch and record at the same time). Anyone out there tried it yet? Does it work on the original iPhone and 3G or just the 3GS?
We'll update when we have more information.
Update 1. We've triied making a few video calls. It gives us
