iChat‘s picture-in-picture and Snapshot is "mirrored"

Views from your iSight camera appear flipped or reversed to you, like a mirror image. These views include:

• In the "Preview" window in Preferences under the Video tab
  
• The picture-in-picture view while in a conference
  
• The Snapshot
  
• The preview in the First Time User interface

This is by design. The effect is similar to what you would see if you were looking into a mirror.

Your image will appear in its natural, unreversed state to those with whom you chat.