(I really should be on comission..)
You could look into installing Ubuntu.
It's a free operating system, that's better than Windows in many respects. If you just want a simple system for doing video chats etc., that'll otherwise be very reliable, then this could be a good idea. It also comes with software for typing, doing spreadsheets, email, web browsing, etc.
More to the point, there is a version of Skype for it. Skype is the best video chatting system right now (also free), available for most popular platforms.
Here are some links:
http://www.ubuntu.com/products/whatisubuntu
http://www.skype.com