Skype servers are down (at least at the time of this writing.) I had scheduled a conference call at 1:30 EST today and had planned to use Skype to make it. I brought up the client and the service came up, went down, then laid down. My internet connection here at Castle ThinkHammer is unstable anyway, so I I chalked it up to my local carrier reminding me of how lucky I am when the connection actually works.
Everything else on the Internet worked however and I actually made the call on Vonage which still is the most reliable of all my VoIP options.
Skype has been down for a few hours according to Mike A at TechCrunch. No worries, I had a trusty workaround.