These are the questions which have been asked several times. Perhaps your question is answered here as well:

Q #1: Does mcePhone support the video feature of Skype?
A: The other person can see your video, if you have video enabled, but you are not yet able to see the other person. Unfortunately, we need to wait for Skype to add a function to their software so that we can access the video and show it in Media Center. Believe us, we have invested vast amount of time to make video possible without waiting for Skype with no luck so far... We keep on pushing this at Skype. If you purchase mcePhone, you will get free updates with the newest features, even video when it will will be available in mcePhone.

Q #2: Does mcePhone work on Media Center extenders like XBox 360?
A: The security functions of the Skype client prevents Skype from running completely invisible in the background. This does interfere with the way Media Center extenders are working. But we are working on it to perhaps get this combination to work together one day...

Q #3: I get the error "unable to connect to Skype" when i start mcePhone. What is that?
A: mcePhone should have asked for access to Skype on the first start. If that was denied, this error message is displayed. Just open the options in Skype and choose "Advanced Settings" in the left navigation pane. Then click on "Manage other programs' access to Skype" and look for "ehexthost.exe" in the list. Choose it and click on the "Change" button on the right. Select "Allow this program to use Skype" and click the OK-button. Then start Media Center and mcePhone and it should work as expected.