Poor quality of video chat

When I try to video chat with people on iChat (I have a Macbook), the quality of the video is terrible, even though my internet connection is usually strong and fast. I have even tried it with people on computers in the same room, and I have the same problem. Is it just a connection problem that I can't really do anything about, or do I have something set incorrectly?

this happens sometimes for me too, it may be the other person's connection, but usually i just quit the window and resend the invitation. The quality usually improves.

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