Users must first start a call to a friend, then find the button to add video to that call. That growing popularity of video-calling has taken place despite the fact that existing versions of Skype software make the video feature hard to find. This has fueled a surge in video calling on Skype, and it already constitutes 28 percent of all calls made on the service, Silverman said. The rise of video-sharing site YouTube has since popularized, especially among younger users, the use of Web cameras connected to home computers.

Skype has offered video-calling since late 2005, but due to unfamiliarity with it then - and a lack of Web-camera-ready computers - it was an after-thought for many users. He said Skype was ready to take heat from fans of its classic, small-screen design for the significant revamp in 4.0, which features a more video-friendly, full-screen set-up.

Skype generated $382 million in 2007 revenue and Wall Street analysts expect it to top $500 million in 2008. Skype lets users make international computer-to-computer calls to other users in most countries for free, and calls from Skype-equipped computers or phones to landlines or cell phones at low rates. It also incorporates features for non-technical users that detect computer settings, available bandwidth and connected audio or video devices to make getting started easier. The 4.0 test version invites users to post bigger photos of themselves, instead of just thumbnail images, to encourage callers to see and be seen. The Luxembourg-based unit of online auction leader eBay Inc EBAY.O said that public testing of Skype version 4.0 would begin making video a more integral part of the service. FRANKFURT, June 18 (Reuters) - Web communications leader Skype begins public testing on Wednesday of a new version of its software for making free or low-cost phone calls that aims to make casual video chatting more common.

Online skype users with photo