Cannot receive webcam video

My Fiancé and I have been talking via skype on webcams for the past 6 years, last night when we tried to talk to each other skype would not allow her to turn on her webcam, and would instantly turn mine off if I tried to turn it on. We decided to try google hangout and I can see her but she cannot see anything on her screen (it is a blank white box where the video should be). When she uses photo booth, or test calls video works fine, and the same goes for me. I cannot find any reason there would be an issue here. Anyone know how to fix this or at least what the problem even is? It's hard to even classify because she can view streaming video, and video messages sent over skype but when it's streaming webcam video she has a problem, but when she uses her webcam locally it works fine.

Do you both own Macs? If so, use your FaceTime.app instead of Skype.

We do both have macs but she has an older version of the OS and she can't get FaceTime.

If she has an older version of OS X, why not have her update to the latest that her machine can run? Snow Leopard (10.6.8) is only $19.99 from Apple on line and that would give her FaceTime. If you post some specs for her machine we can try to figure out something either with Skype or FaceTime.

Sorry I have been busy and unable to post a reply. We were trying to get skype fixed in order to avoid paying the $20 for an upgrade that might work as opposed to fixing skype for free that would definitely work. We did isolate the issue to my machine, she is able to make video calls with other people but I cannot. We both have fully up to date skype versions and OS versions, I'm wondering if maybe I would be incompatable with her OS somehow? This is the machine she has, straight out of the box Apple Macbook 'Core 2 Duo' 2.1 13 (White-08) [Macbook 4,1 - A1181 (EMC 2242)] - $499.00 : ExpressMacs.com

I have the current generation macbook laptop but I got it in 2011 and upgraded to mountain lion.

If you've isolated the problem to your machine, then all I can suggest is that you try to reinstall Skype after completely removing it. Install the latest version. Also make sure your firewall is off and you're not running any anti virus software (which isn't needed anyway). Also check on your camera by opening Photo Booth.