Video problem with MSN messenger live 8.5

Hi,
I can not have a video conversation within messenger live 8.5. After a
few seconds I start the video, messenger says that the other party as
stopped the video and cancels the video invitation. I tried with
different friends with no luck. Re-installing messenger does not fix
it. Previous versions of messenger live were working great. I use
windows xp sp2.
Has anyone experienced the problem? Ayn suggestion?
Thanks