As Gareth pointed out in his comments below, our new monitor has a built in webcam. His suggestion that we will use this for naughty purposes in unfounded as we have had a webcam running for many months now and this integrated one is just a bonus that we should not need to use.
Serena's parents have a similar integrated webcam on their laptop and most weekends we video conference with them so they can say hello to Lauren and Jocey. Our old webcam was not behaving so we currently use one of Logitech's many excellent contributions to the PC world.
For simplicity we have configured Skype to automatically switch on the camera when we chat and this always comes as quite a shock to my friend Lawrence when we blether over Skype! I have to hit the "Stop Video" button rather sharpish!!!!