It seems that most smartphones have a camera on them somewhere, some even have 2 (Front and Rear Facing). The Original iPad has NO Cameras.

I'm wondering if the USB Camera Adapter, that is used to transfer your photos from your Camera to your iPad, if that would work streaming video from your Smartphone to your iPad for Video Conferencing, either by using Skype, or something compatible. I've looked and I cannot find an "App for That"!

You are not insane. There is no app for that. There is no support for an external camera on the iPad. The USB drivers for this type of function, and the API's to support it are not present, so developers can not write an app for it. The USB port also supplies a very limited amount of current, so it would not be able to run a USB camera even if you overcame the software limitation.

There may be some jailbreak solutions, or wireless camera work around, but I have not hear of them. Not that I'm an expert or particularly well informed on either subject.

Currently the only good (or not so good depending on your use) way to get a camera on an iPad is to buy an iPad 2.