Keith Shaw and I tested out Skype on the iPhone today. You can see the fruits of the test here:
Very nice app indeed and will help Skype and iPhone enthusiasts cut down on their phone minutes and allow for cheap international calling. The audio quality was great, even when using the speakerphone option. Naturally, you can only use it over Wi-Fi, but that's fine with me. The AT&T coverage in my neighborhood is a bit spotty, so the Skype app might help me supplement my calling ability on my iPhone.
Note: When you hear my voice, you're hearing the output from Keith's iPhone - not the camera audio or some other microphone in my office.
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