I have a logitech Quickcam Pro 9000 connected to my ubuntu desktop and it works fine with Skype.
However, Skype inputs and sends my video at the native (for the webcam I think) resolution of 1600 x 1200. I can confirm that the camera supports a wide variety of resolutions starting from 160 x 120 upto 1600 x 1200 (including e.g., 320 x 240, 352 x 288) using cheese. I can select these resolutions and see the output is appropriately scaled.
Also, I don't see any improvements in smoothness of motion in the captured video so I suspect the original 1600 x 1200 is scaled down in the path somewhere.
Is it possible to somehow to enable this scaling capability towards Skype?