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I confirm that it's possible to receive video on the original iPad. It's not perfect, but bottleneck here is probably camera or WiFi connection.

Thanks! family in AU has ipad1, we've got a 2 here, so I wanted to try to surprise them tomorrow. :)

I am not convinced you got an answer to the qusetion you posed. The way I read this, is:

Q: can one receive video using the Skype for iPhone released months ago from this new Skype for iPad?

A: yes, you can receive video on an iPad 1 (the one without camera), using this new Skype for iPad.

The iPhone version on the iPad classic should be replaced with the iPad version, then good to go.