If your front facing camera isn't working correctly just go into the menu of the camera and restore default. It has worked for me and other Tbolt users. I hope it works for you as well. Also visit www.techguysmartbuy.com for more up to date news info.
I am using skype on my TB to video chat. There are a few threads that you can get the apk file for skype to use.
Skype is easier because everyone I want to video chat with already has skype.
I know other will disagree, but at least on a Stock TB, my son and I tried Tango, and we have Skype Mobile too and Tango, was choppy, plus seemed to drain battery, Sykpe barely uses any resources, works like when using my PC.