In October, I asked on this board if anyone had used Skype-a free software program that lets users enable video as they "talk" to others on their family/friend's list. As feedback was generally positive, I proceeded to help my family members create accounts and, if necessary, we bought webcams for their computers.
I am so glad we did this. I have had my nephews sing me Happy Birthday as my father accompanied them on his guitar, seen Halloween costumes, watched gingerbread houses being made, exchanged "virtual" candy corns, and so on. Many times, it is great just to "see" the person when you talk to them. Plus you can forward Skype calls to your cell phone! I am still learning about this feature.
There are other programs besides Skype you can use. Also, if you have Mac OS X, you may already have a camera built into your computer!