Fring (App Store Link) has always been our favorite iPhone instant messaging app…by far.  Not only is it free, it was the first to allow Skype calls and SIP calls (including Google’s Gizmo5).  It was also one of the first to have Push Notifications and it works across many smartphone platforms.   

Today’s iPhone update allows video calling to Skype users via the iPhone‘s built in camera.  We misunderstood the video.  It looks like the app only pulls video from a Desktop Skype client, not from the iPhones camera like the Knocking application.  Screenshots below.

We’ll update when we have more information.

Update 1. We’ve triied making a few video calls.  It gives us the option on 3G and original iPhones – but they aren’t going through.

Update 2. We’ve managed to make a video call to a desktop Skype client.  They couldn’t see us but we could see them (screengrab below).  This needs some work obviously.

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