Skype Video Problem

How can I ensure my DirectX and graphics drivers are working correctly?

Checking if DirectX 9.0c or higher is installed on your computer
To check whether DirectX 9.0c or higher is installed on your computer:

Open the DirectX Diagnostic Tool.
On Windows 7: Click Start > Programs > Accessories > Command Prompt, type dxdiag and press Enter.
On Windows XP & Vista: Click Start > Run, type dxdiag and press Enter.
Check the version of DirectX that you have installed.
On the System tab, in the System Information area, next to DirectX Version, check the version number displayed. If it is 9.0c or higher, proceed to the next step. If it is lower than 9.0c, you will need to upgrade. For Windows Vista and Windows 7, get the latest version of DirectX by updating Windows with the latest service packs and updates. For Windows XP, download it here.
If the DirectX Diagnostic Tool does not open, or an error is displayed, then it is likely that you do not have DirectX installed on your computer. Download and install it using the links above.
Remember to restart your computer after installing or updating DirectX.
Ensure that DirectDraw Acceleration and Direct3D Acceleration are enabled.
On the Display tab, in the DirectX Features area, ensure that DirectDraw Acceleration and Direct3D Acceleration are listed as "Enabled".
Check the Notes area at the bottom of the Display tab, and check that no problems are found.
Click Exit.