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The Pidgin Embedded Video with with the image patch has been uploaded to the Frasten PPA (thanks to Frasten for the heads up!) so you no longer have to compile it. In case you don't know what I'm talking about, see this post.

To install Pidgin Embedded Video in Ubuntu, run the following commands in a terminal:

sudo add-apt-repository ppa:frasten/ppa
sudo apt-get update
sudo apt-get install pidgin-embeddedvideo

Then activate the plugin from the Pidgin options.

If you don't want to add the PPA, you can also manually download the .deb file.