Looking for comments on Skype

Read an article in our local paper's tech column about Skype. It allows people with a high speed internet connection to be able to talk free to other people who also have this service. The software is free and all you need is a Skype enabled phone,( cheapest one I saw was at Wal Mart for just under $25.) You can also sign up for an upgrade which allows you to call landline and cell phones in the US or Canada for $14.95/yr unlimited. This would work out great for me as I just got Verizon FiOS and I really don't make enough long distance calls to warrant a long distance companies' charges. I currently am enrolled in AT&T and they charge me a minimum monthly usage charge of $5, even if I don't call anyone long distance. The only person I really call long distance is my brother out in Colorado, and maybe a business who doesn't have an toll free number. Does anyone else have/use Skype and what are your comments on the service?
Here is their website if you want to check it out:http://skype.com/ Thanks in advance for any comments.

My grandfather has a Logitech webcam and uses it and Skype to talk to relatives in Holland (from the US) for free. It's not the best quality video, but it's free and it works well enough. Not sure how well it works for Skype phones or whatever.

You don't even need a phone, just a mic for your pc and it works a treat.