Do you use a web cam an MSN Live instead of the phone?

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I bought a web cam about one year ago and love the concept of not only talking to your friends and family but viewing them too. The problem I have is convincing my family and friends to go in the same direction and dump the long distance charges that telephone companies charge. You would think it was a no brainer but believe me it has been a upwards battle. I really want my daughter to get with the program especially that I have a young grandson and a new born on the way. We do not live in the same city. We are about 2400 miles from one another so to see each other it is a wee bit of a problem.