Hi,
I am not really sure what you expect from Skype picture quality wise,
my iPAD2 front Camera is OK for chatting ... at lead for me but maybe
you expect hight quality than me.
Did you ever try to use the backward Camera, the Chip should be
better (resolution wise) and it is just a button you need to press on
the Skype screen ... to change the camera...
Btw. the picture quality depends also on the settings and the connection speed
on both ends ...
cu and I hope you will find a solution you like