Google recently announced that they added a new lab feature related to Video chat in Gmail.
The users who are using video chat in gmail will have more features soon.
As a result and to test the feature they released (VIDEO CHAT ENHANCEMENTS) lab feature.
Visit the Gmail Labs tab under Settings, turn on "Video chat enhancements," and right away, you'll see higher resolution video and a bigger video chat window.
this new feature uses a new mechanism which enables wide-screen VGA and frees up valuable resources on your computer.
Note : Both you and the person you're chatting with will need to have the lab turned on. Remember that you can always revert to standard video chat by disabling the lab.
Here is a basic example of video enhancement feature.