Make a Visual Baby Monitor with Skype

Ever had little Johnny crying when you are on the other side of the house and can't hear him? Here is how to set up a baby monitor on Skype.

Steps

Set up a webcam so it records the baby both visually and audibly.
Download and install Skype. Create an account specifically for this task.
Customize your Skype settings. Go to Tools --> Options
- Under General Settings, choose "Start Skype when I start Windows" (or whatever your operating system is).
- Under Video Settings, check "Automatically receive video and screen sharing from...people in my Contact list only."
- Under Privacy, check to only allow people in your contact list. Then click on the "Show Advanced Options" button.
- Select "people in my Contact list only" for all settings.
- Under Call Settings, select "Only allow people on my Contact list to call me" then click on "Show Advanced Options".
- Select "Answer incoming calls automatically" and "Start my video automatically when I am in a call".
- Remember to Save all of these changes.
Add your other Skype account to the contacts list. Add your baby's account to your contacts list.
Turn down the computer volume. This is so it doesn't wake the baby when it turns on.
Call the baby's Skype account. It should automatically answer and start the video.

You can also use an old smart phone that can run Skype. Go over WiFi and keep it plugged into a wall.
Or, you can avoid dedicating a computer and webcam to the baby and simply get a wireless IP video camera with audio for around $100, then just log on to the camera using the monitoring program that will come with it. If you have a LAN and use a redirection service (DYDNS for instance) you'll be able to see/hear the baby from anywhere there is an Internet connection. Redirection is free, set up is easy and Skype can be used for it's real purpose.
If you don't want to have a computer running 24/7, or the baby can't sleep with the noise, you can also consider buying a Videophone from Skype's online store.
You can also add more accounts to the baby's contacts list, if your spouse wants to check in on the baby from work, for example.

Avoid placing the webcam in the baby's reach, as this can be a choking hazard.
Make sure that you allow only those people you want to see your baby in the contact list.