So far, the following is working quite well for us to stay in contact with friends and family:

1. Run Windows Live Messenger: http://Messenger.Live.com and login when you are online - make sure we are setup as each other's "buddies".
2. Get the Microsoft LifeCam VX-6000 so we can see each other via Video, plus of course talk to each other (all for no cost other than your connection to the Internet). The VX-6000 has better video and voice quality than the other webcams on the market. 
3. Get a Windows Live Spaces site: http://Spaces.Live.com so we can post photos and stories about what's going on in our lives. And when running Messenger, we see when each other's Spaces site has been updated just by the little "gleam" next to each other's names.

So far, we have had Video chats with my folks, my brother, and Lorie's folks.... soon others too.