Logitech recently manufactured Logitech HD Pro Webcam C920 which produces high quality images and video recording that you will love. Most importantly, H 264 video compression can easily be done in the camera itself, YES; it has built-in hardware compression here. If you are using Skype, you can test this camera, it really works great and the video quality is higher than others and you won’t have any problem at all. You may have to install Skype 5.7 to get advantage of the 1080 video streaming in Skype. Main features are H.264 HW encoding for quick and smooth HD experience, Carl Zeiss optics with premium 20-step Autofocus, Full HD 1080p video calling on Skype, Full HD 1080p recordings and fast upload to Facebook, Twitter and YouTube and high quality dual MIC for stereo audio.