This works pretty much as advertised, with two minor quibbles: firstly, the Skype app on the TV is a bit fiddly to use, and secondly, as mentioned in some of the reviews on the amazon.com site, it sends audio out the TV speakers only (i.e. not out through the optical link to your surround sound processor, for example), and there doesn't appear to be any way to change that. Not such a big deal, but annoying all the same - I have to remember to raise the TV volume to use skype, then drop it back down again when I'm done.
A quibble that should be obvious from looking at this page: it's severely overpriced for a single-use camera. It'd be nice if it was usable for other stuff, such as YouTube uploads, or could be plugged into a PC or Mac as an outboard camera.