I updated to latest Skype and when I tried to use video call assisted by Dell Webcam Central, I got this error.
"To use this feature, ensure that the video streaming format is not MJPEG or H.264."
New Skype does not allow Dell Webcam Central to share desktop or even add any effects/animation because of some changes that have apparently "improved" video calls. I wanted to share my desktop through Skype-Dell Webcam Central. This is how I fixed the issue.
Remove latest Skype and install a "Skype Special Edition" (Skype 6.1.999.130)
http://www.skype.com/go/getskype-sse
(Another version: http://download.skype.com/msi/SkypeSetup_6.1.0.129.msi)
(Another version: http://download.skype.com/msi/SkypeSetup_6.1.0.129.msi)
It should be now compatible with Dell Webcam Central. If there is any issue, go to 'Capture mode' (Change from IM mode) and you will be able to see your own video. Drop down the camera icon below the video window and make sure that you have selected a video resolution lower than 1280x720.
If you want to update Dell Webcam Central, click the question mark on top right corner and click "Check for Software update..."
Reference:
Why can’t I make video calls on the latest version of Skype for Windows desktop? https://support.skype.com/en/faq/FA12252/why-can-t-i-make-video-calls-on-the-latest-version-of-skype-for-windows-desktop
Video quality poor after skype update - Skype Community
http://community.skype.com/t5/Windows-desktop-client/Video-quality-poor-after-skype-update/td-p/1516855
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