Why does Google Hangouts not work using Chrome?

When using Google Hangouts to have a video chat using the Chrome browser you are unable to talk to each other and/or get the following message: "Couldn't start the video call because of a network error"

This is a know issue by Google, waiting for a fix.

To use Google Hangout video chat functionality, please use Firefox.

This has been tested within the University both wirelessly and wired connection and is working fine.

This issue is only for video calling using Google Hangouts, not instant messaging which still works fine using Chrome.