Thank you Cody21 for all your help. I really appreciate the time you're taking to help out.

@susja,

I can understand how inconvenient this can be and I want to help get this resolved. I've researched this and found no reported known issue of the camera on the  Droid X not working when using Skype.

Has this worked differently before, where the other person has been able to view your video when using Skype? Are you having issues with the camera on the phone other then when using it for Skype? If you are just recording a video with the camera on your phone is it working properly? 

If the issue with the camera only occurs when using Skype you may want to try un-installing and re-installing Skype. If the camera still doesn't work after the re-install, please post back and I will be more than happy to further troubleshoot.