According to the Empathy FAQ:
How can I test if audio/video is working?
Collabora is hosting an echo service: echo@test.collabora.co.uk .
This is a jabber contact you can add to your roster. When you call it,
anything you say will be echoed to you.
Does Empathy support audio and video chat with Google Talk?
Yes, you can have a audio or video chat on the Gtalk protocol with
someone using Gmail's video chat feature, Empathy or Pidgin.
Note that if your contact is using Google Video, be sure he has the
latest version of the plugin which can be downloaded from this
page.
Which video codec do I need?
For calls between empathy and empathy, all you need is theora, which
is installed by default on all distributions.
For calls between empathy and gtalk, you need h264 encoder. On ubuntu
you can get it by installing gstreamer0.10-plugins-ugly-multiverse
and gstreamer0.10-ffmpeg . To know if a codec is installed, you can
use that command:
$ gst-inspect-0.10 | grep 264
Make sure you have encoder and decoder in the list. For h264 you'll
have x264enc encoder for example. Similar command can be used for
other codecs.
So have you troubleshot the application with the above steps mentioned and are still having the problem? If so, please add any necessary information to the post above and leave a comment on this answer (so that I can delete it off). However, if the problem has been solved due to this answer, please mark it accepted :)