Video chat was something missing with Gmail and the good news is that Gmail has introduced Video chat. This was announced at the Gmail Blog yesterday. I tried to use this feature.
First login to your Gmail account and click on an options and then Video Chat. Once you click on video chat you will be taken to the download page of the plugin which needs to be installed to do video chat, or you can directly go to the download page. It will hardly 2-3 minutes to download and the installation is done automatically. You can also select the language if you are not using English.

Once you finish the installation successfully, you will get an icon like this on the contact list. You will be able to do Video chat with your contact only if the contact has this plugin installed. I have not used this much, but I am sure Google products will be great and optimized. If you have a webcam and use Video chat, then its something worth to try.
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