yes the image on the screen is always 90 degrees wrong. not a huge problem i guess, unless you like looking at yourself while you speak 
Wish there was a way to get rid of the lag though. I'm using a 10mbit broadband over wifi on both phones and theres still a 5 second lag of both video and audio. Perhaps having in-call options for send resolutions would speed things up. for example Auto(program pings the device your calling and adjust send res of both phones), low, med, high.
If could choose voice call only, I think this program would really take off, as people would save a fortune on calls. Particuarly if choosing voice call only also routed the audio through the earpiece as opposed to the device speaker (something skype for mobiles cant do)