Google's announced that it's going to start rolling out Google Talk for video chat for Android devices. Android users will be able to voice and video chat with other Android users using Google Talk over 3G, 4G or Wi-Fi. Google says that this feature will be available for Nexus S users over the next few weeks with the next over the air OS update. Video talk will be on other Android 2.3 and higher devices soon.
After the update comes through, on your Google Talk list of contacts on your Android device, you will see a video and a voice icon next to each contact. As is obvious, you just need to touch the button for the feature you want and chat away. Video chat can be placed on 'hold' while audio chats can go on if you need to multitask on your device. During a voice or a video chat, text chats from the contact you're chatting (over video or audio) with will overlay on the video/audio chat.
So far, this service, much in the style of FaceTime, is restricted to Android to Android devices. We're hoping that Android goes the way of Skype though, and opens up the video chat goodies to various other operating systems.