Check out Microsoft Research's video telephony application, Microsoft Portrait. New in version 3.0 Beta is support for Microsoft Windows Mobile 5.0 with ARM series CPUs. It can now also support any built-in or plug-in camera.
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"Microsoft Portrait is a research prototype for mobile video communication. It supports .NET Messenger Service, Session Initiation Protocol and Internet Locator Service on PCs, Pocket PCs, Handheld PCs and Smartphone. It runs on local area networks, dialup networks and even wireless networks with bandwidths as low as 9.6 kilobits/second. Microsoft Portrait delivers portrait-like video if users are in low bandwidths and displays full-color video if users are in broadband. In low bandwidths, portrait video possesses clearer shape, smoother motion, shorter latency and much cheaper computational cost than do conventional video technologies. Microsoft Portrait pursues providing presence notification, chat/voice/video functions anytime, anywhere, on any device."
Here's a clip...
"Microsoft Portrait is a research prototype for mobile video communication. It supports .NET Messenger Service, Session Initiation Protocol and Internet Locator Service on PCs, Pocket PCs, Handheld PCs and Smartphone. It runs on local area networks, dialup networks and even wireless networks with bandwidths as low as 9.6 kilobits/second. Microsoft Portrait delivers portrait-like video if users are in low bandwidths and displays full-color video if users are in broadband. In low bandwidths, portrait video possesses clearer shape, smoother motion, shorter latency and much cheaper computational cost than do conventional video technologies. Microsoft Portrait pursues providing presence notification, chat/voice/video functions anytime, anywhere, on any device."