Late last week we told you that Yahoo would be updating their Yahoo Messenger app to include 3G video calling. The neat thing about their video calling is that it works between computers and phones too.

Smartphones with front-facing cameras besides the iPhone are supported as well so a huge user base will be present for video calling. The update also includes iOS 4 multitasking and instant notifications. It’s free and get it here.

Update: Doesn’t appear to to work on iPod Touch