Bad Skype video quality from my PC but not from the phone?

AI live in Australia, so I have to keep touch with family back in Sri Lanka via Skype. Ever since moving here, I had been getting complaints about the video they receive being terrible.

The obvious culprit is the internet connection at my current apartment. It is using ADSL2+ and practically I get a bandwidth of about 16Mbps down and 1Mbps up. While it is substantially slower what I got in Japan, it is still similar to the speeds your get on the family package back in Sri Lanka.

But the video I get from the other side is clear!

How to install Logitech C910 drivers on Windows 8

Edit: 
Logitech now has Windows 8 drivers for C910 webcam. You don't have to follow the guide any more. You can download the Windows 8 drivers from HERE.

To the original post then...

If you have a Logitech C910 webcam (maybe it applies to other Logitech models as well) and if you are trying out Windows 8, be it Release Preview or RTM, you might be having trouble getting your webcam to work. Logitech does not yet have a driver for Windows 8. (You can check for C910 drivers here.)

Sorry, this software is not compatible with your operating system. Please visit the Logitech website to download a compatible version.

Never fear, there is a workaround. (There always is ;))

Workaround

Go to Logitech website and download the full Windows 7 drivers first. (You can either download the “Full Installer” or the “Smart Installer”. Now you can simply run the installer under Windows XP SP3 compatibility mode. (Windows 7) The drivers will install just fine.

Here is a video if you are unsure about anything.