Found a solution.
The 1.04 version of FaceTime definitely has a bug.
Solution? Revert back to the previous version.
If you have a recent or near recent cloned backup of your previous system and the earlier version of FaceTime is in your previous system backup, you can simply drag out the new, improved version out of your Applications folder (the new, bug ridden 1.04 version I placed in my home folder. ) drag out the dock icon, as well (as it may still be linked to the new version of FaceTime).
I dragged out of my cloned system backup (still located in my Applications folder) my previous 1.02 version of FaceTime into my current system into my current Applications folder and then dragged the FaceTime icon back down into my OS X Dock.
Click on the FaceTime icon in the Dock and voila, you will have a working FaceTime version,again!
Once you have a working FaceTime back, you can decide if you want to drag the new version (still saved in your Home folder) into the OS X Trash and empty.