(FORTUNE Magazine) – When I was a teenager, I tried out the first commercial videophone at the 1964 World's Fair and thought it was incredibly cool. Sitting in an AT&T booth, I punched a few buttons on a box with a TV screen, and magically, there was a friend at the other end of the line, grinning like an idiot. Since then, despite revolutions in every other form of communication, Ma Bell's prediction that we'd all have videophones in our homes hasn't panned out. Sure, you can spend a couple of grand on a professional videoconferencing outfit, lease a high-speed phone line, and get decent results. Or you can jury-rig a unit with a $100 video camera and your PC. But that takes a lot of time and effort.

That's why I'm impressed by a slick little gadget called ViaTV from 8x8 Inc. of Santa Clara, Calif. With a four-inch color LCD screen and a tiny camera mounted in a sleek gray casing that rotates on a compact base, it comes as close to George Jetson's videophone as anything I've seen. It's easy to set up, doesn't require a computer, and works right out of the box.

Be aware that ViaTV hasn't solved the main problem with video over dial tone: Standard voice lines don't have enough bandwidth to transmit the full-motion images we're used to on TV. While 8x8 makes hardware that compresses the data stream enough to produce decent pictures, its technology isn't perfect. But if you like to do business face-to-face or like the idea of seeing faraway relatives while you talk to them, it's worth a look.

ViaTV comes in three models. The top-of-the-line VC-150, which I tested on my desktop in Baltimore with the help of my son in New Jersey and my mother in Philadelphia, is a stand-alone unit that sells for about $600. If you're willing to fool with a few more cables, you can save $200 with the VC-105, a camera with an integrated modem that uses your TV set for display. At the low end ($350), the VC-55 is a box that handles communications only--you provide the video camera and TV.

Getting the VC-150 up and running is just like setting up an answering machine: Connect the VC-150 to your wall jack, and plug your phone into the VC-150. When you lift the telephone handset, you'll see your own picture on the screen. Making a call is easy--just dial somebody who has a compatible videophone. Once he answers, either of you can establish a video connection by pressing the "#" key on your phone. After 30 seconds or so your picture disappears, and his pops up. Using the handset and the VC-150's onscreen menu, you can change the size of the image, making it bigger or smaller in return for a less or more detailed picture.

At best, the VC-150 can deliver about 15 frames a second of video (about half the frames delivered by a TV show), and that's with a small picture and poor image quality. If you want more detail you'll get jerky movements, and lips don't always synchronize well with the sound. But the overall result isn't bad. In a month or so 8x8 plans to introduce a new stand-alone videophone that provides better motion and picture detail, so you may find some bargains on current models. For information, call 888-843-9898 or surf to www.viatv.com.

--Michael J. Himowitz