I am redoing my office and doing some overdo equipment upgrades.   One of the key enablers for us at Outcome Labs is the combination of Skype and Yugma. The free versions of both services are reliable and have good quality.  We also use premium services from both vendors.

We are using the video conferencing of Skype much more frequently.   These really help enhance communications and personal connections with our distributed teams.   My current Dell XPS laptop has a 1.2 megapixel camera.  While it is functional, we have decided it is worth the investment to upgrade this to higher fidelity technology.   We have been looking at new laptops with 2.0 megapixel cameras and some of Logitech's standalone devices.  All seem like solid improvements, but I was really impressed with this new offering from Microsoft featured on Geek Brief.

http://www.geekbrief.tv/lifecam-cinema-spacers-john-gruber-post-cristal

What do you currently use for video conferencing?