Bruce's antlers are actually being dynamically displayed with the software that came with his Logitech webcam.
FaceTime is great, but Skype is more prevalent. I would use FaceTime more if it worked over 3G. This is why I'm glad to see a native Skype App come to iPad. Skype calls are not just limited to iOS Devices. The call you see taking place above is between me and my buddy Bruce Mandel. I'm on my iPad 2 and he's on his desktop PC in his office. That's the real beauty of a solution like this. It's more universal!
How well does it work?
I downloaded the App, logged in with my existing Skype ID and my contacts came up. I was able to see who was online and who wasn't. I was able to initiate free Skype-to-Skype video calls with the tap of a finger. I could also use my Skype credits to call regular phone numbers. Again, this will be extremely more useful to me than FaceTime especially when traveling abroad. The call quality for both voice and video was good. Bruce said that I had about a 2 second lag in my video to my voice. His was perfectly in sync. I would probably attribute that to my slower upload speed where I am. Although there was a lag, the overall experience was very good. I placed a phone call to a regular landline and the call quality was excellent!
The only other minor issue was that when I initiated the video call with the iPad in landscape orientation the person I was calling said that my video was sideways. Rotating the iPad up and back again fixed it. This happened with two different callers.
If you don't have a front facing camera on your iOS device you can still receive Skype video from the other caller.