microsoft lifecam issue - internet speed?

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I have a dell pc with ms xp running. we just got a ms lifecam webcam and we are having some audio issues. the other person has cable internet and has no problems seeing/hearing us. Our issue is that the audio is like a bad reception cell phone call. when we just have audio it is fine. but when we add the video the video cuts out constantly. can't find anything on the ms site, but is there a minimum speed of internet that you need for a two way video call? we have 3mgb (i believe) via DSL. thank you!
 

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