Oh man, oh man, oh man! You can download Fring for Android right now and make two-way video calls - one's demonstrated in all the promises of the future - RIGHT NOW. For Android.
Here's what the quality is like. Sometimes it's echo-y, and sometimes when there's too much motion it gets pixelated to hell, but it's two-way video calling for free. How can you not get excited about that?
Fring doesn't care whether you're in vertical or horizontal orientation, leaving it up to you and your partner to pick one and stick with it. Switching back and forth means your buddy will have to turn his phone to compensate, which changes the orientation of his video too. And it only really works well with an Android phone with a front camera, like the Sprint HTC EVO we tried this on.
Matt and I tested out the two-way calling on both Wi-Fi and 3G, and there wasn't really a huge difference in quality. That probably says more about the algorithm they're using not taking advantage of the extra bandwidth or Matt's Wi-Fi reception quality where he is, but it also means that the 3G quality is pretty damn impressive. And I didn't really notice an outrageous delay either.
So yeah, if you have an Android phone with a front camera you need to go download this right now. The only other negative we can think of is that there's no Fring for computers, so you can't do phone to computer video chats. [Fring]
Update: But you CAN use the Fring Skype plugin, which lets you do phone to computer, but there's a weird 3-4 second delay in there when you do it. Not perfect, but still pretty damn cool.