Thank you for mentioning VZOchat. I wasn't aware of that application. Do you know the specifics about it? The website doesn't mention anything about encryption or video quality.

As for Skype increasing quality that has to due with the following three factors:

High Quality Video: Skype version 3.8 and Skype beta 4.o have incorporated what Skype calls High Quality Video (HQV). Skype?s standard video offered a resolution of 320 x 240 pixels (QVGA) at 15 fps. Whereas HQV offers 640 x 480 pixels (VGA) at up to 30 fps. Simply put, video resolution is four times better and the frame rate is twice the speed, meaning a much sharper image and if so desired the ability to use a larger window, without losing image quality.

HQV video Webcam: Skype has worked directly with Logitech to create optimized cameras for HQV. The specific cameras are Logitech QuickCam Pro for Notebooks, the Logitech QuickCam Pro 9000, and the Logitech QuickCam Sphere AF (Logitech QuickCam Orbit AF in the US).

Bandwidth: HQV requires a symmetrical bandwidth of at least 384 Kbps. That may be a problem for some DSL users as the upload on many DSL circuits is only 256 kbps. The other challenge is that all parties have to meet this requirement, since it?s symmetrical. Sorry, but that?s the only way it?ll work.