How do I know if my camera/video is working?

Open the Photo Booth or Facetime apps, because they also use the camera. If the camera works in both those apps, your camera is fine and the problem is somewhere in Skype settings.

PhotoBooth and Facetime should be in your Dock by default:

The icon to the left of PhotoBooth in the image is Facetime. A green light next to the camera's lens should come on when the camera is active.

If these are not in your Dock, open your hard drive icon and they will be in the "Applications" folder.

KIKIOF3 wrote:

Thanks...now if I can only figure out what that is!

Whenever anyone mentions a built-in app to you, and you don't know what it is, just type its name into Spotlight search and it will come up, you don't even have to know where it is stored.

In this case, though, as Allan showed you both applications should be on your Dock already, if you haven't taken them off at some point.