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Fix for facetime camera using skype

Update:11-30Source: network consolidation
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OS X 10.8.5 broke Video on MacBook Air
Search for the above heading on Google or on Skype Communities.  Go to page 14 of the thread and you will find a very clearly articulated solution with screen shots to walk you thru the fix.  It is really a very simple process and takes only a few minutes and works perfectly for a mid 2013 Macbook Air.
Unfortunately the Apple support line has no idea how to resolve the issue.  The first line support agent i spoke with had never heard of the problem, but, upon further consultation found that this was a well known issue.  He said they were working on the problem and it would be fixed "soon".
It is amazing to me that Apple would release an update which renders you ability to use your camera over the internet with any other non Mac computer completely useless.  It tells you something about how they think of their customers.

The Best Answer

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I have this exact problem, but no skin on my iPhone, so that isn't the problem for everyone. Glad you figured it out though. It is frustrating.