is IP to IP (direct IP connection) for video chat possible??

I'm currently using Yahoo Messenger for chatting with webcam and notice that more often than not, the video streaming lags. While at the same time, I have this device from D-Link (DVC-1000 which is a stand alone webcam for video conferencing that turns your TV into a video conferencing device. Of course the other party should also have this device) and upon observation and comparison, I can't help but notice that when I use DVC-1000, there's no lag at all while YM based and/or MSN Messenger based video chats often has lags in video streaming.

Could it be that D-Link's host server for this service is better and more dedicated for video conferencing than MSN and Yahoo??

Lastly, any of you guys have a much better host for FREE video conferencing that is better than MSN & Yahoo? And of course, nothing will beat I guess direct IP to IP video chatting as there will be no host to manage the process, is this direct IP to IP video chatting possible? If so, how do I set it up?