For the most part for me, Skype performs as intended but I still get 1 in 7 (average) SMS stuck as 'pending' meaning I am never sure if the message was received at the other end by the intended recipient so I end up calling them.

Apparently this is more to do with the cell phone network not always sending a 'successful delivery' flag back to Skype. So you may find some cell phone networks behave better than others.

Hgh quality video and audio to keep in touch with friends. Only thing is that I have few friends using it.

Skype is very much hit and miss. On one hand, it brought video conference to the masses and cheap conference calls to my company. On the other, the quality is mediocre on lots of calls, the service unreliable and the UI for the mac version rather drab. I downgraded to 2.6 stable from 2.7 beta due to the various issues introduced by the so-called 'high quality/resolution' calls, which do not work as advertised and are just a tie in with Logitech to sell more quickcams. (yes I know about the xml trick, but still). Recommended with reservations until IChat gets its stuff together.

Version 2.7 beta brings 640×480 video.
Available here.

Since yesterday that Skype is unable to establish a connection. And this also happens with other Skype users. My brother uses a PC and he has the same problem: since yesterday he is unable to connect through Skype.
Anyboday knows what's happening? Is the whole Skype system down?

@ bradbeattie:
I have installed version 2.7.0.49 yesterday and it did not add itself to the login items. The preferences were kept just the same, as they were in the previous version.

The new version adds itself to your login items. For shame, Skype-coders, for shame.

2.7.0.49 is crappy, stay with 2.6.0.151 for the moment:

Contact grouping is very undone, re-arranging groups is not possible, drag and drop arranging neither. It does not put online contacts at the top, all three "view" options (show/hide offline, sort by status/kind) do not work.
There seem to be some good improvements, but unless the contacts-list does work (which is kind of important), I'll stay with 2.6.151.

maybe if the status would be visible in the dock icon, may be practical more than another menu bar icon...

I love how the music fades out/in when receiving/making a call. However, the implementation is... not perfect. Only starts decreasig while the call is already accepted, resuming also has a delay which kills the nice fade-in effect. It's a minor issue though.

Only major drawback is that incoming text-chats do not open automatically, having to klick the red (1) top right of my contacts is annoying and you need to click that anyway. This makes no sense, just open the chat-window automatically, devs!