Given that the iPad 2 has a front facing camera, it has been only a matter of time before Skype would release a version of their video conferencing app for the iPad. According to CNET, that time is very soon as they report Skype expects Apple to approve the iPad version of Skype this coming Tuesday.
Currently, two major apps are available that utilize the iPad’s front camera, Apple’s Facetime and Fring, neither of which have as large an installed base of users as Skype. Facetime is limited to video calls between iOS and OS X devices, but Fring and Skype both provide cross-platform video calling. In the future, you should be able to make Skype calls between iOS devices and any other device such as Android or Windows Phone that have a Skype app.
CNET has an early copy of Skype for iPad and reports that the video conferencing works very well with the iPad connected to WiFi. Video calls over 3G networks is not as good, but still viewable. The Skype app will run on both the original iPad and the iPad 2, even though the original iPad does not have a camera. You will be able to receive video on the original iPad, but not broadcast it.
If you are interested in seeing how Skype looks on the iPad, you can look at the photos that CNET includes in their article, and there is a video demonstration of the app posted on YouTube.