whew!! Got Skype working on my 770. I'm so stoked.
thanks to all the posters on here and other sites.
check out this site for links to the necessary updates and files(thanks ove!):
http://ovenordstrom.blogspot.com/200...g-os-2007.html
HERE IS A STEP-BY-STEP FOR ALL THE NEWBIES
(contributions from various posts and blogs)

A. Install the os2007 hacker edition:
http://tablets-dev.nokia.com/os2007_hacker_edition.php

A1. Make sure the battery is full.

A2. Get the Windows Nokia Update Wizard
http://nds1.nokia.com/files/support/...ate_Wizard.exe (I guess you are running windows, but if you're in Linux, see http://maemo.org/community/wiki/howt...magewithlinux/ ).

A3. Run the wizard, do whatever it says, but when it offers you upgrading to some 2006 newest version, click on Browse and pick the bin file of the os2007 mentioned above. The nokia is updated.

B. Install Skype from your applications manager

C. Install Xterm:
http://maemo-hackers.org/osso-xterm.install

D. Install becomeroot:
http://www.mediafire.com/?41rrgttyrd0

E. Get the skyhost file - pasted Bundyo's post:

E1. On your PC download skype_1.7.62.48.5_armel.deb from here:
http://catalogue.tableteer.nokia.com.../user/s/skype/ and extract it with some decompressor (I used IZArc on windows, on linux you can use dpkg or mc or something else).

E2.click on file skype_1.7.62.48.5_armel.deb for extraction, upon viewing tree system from izarc, in folder skype_1.7...../usr/bin you will find skyhost, extract into your win desktop.

E3. Find a way to copy the file skyhost (folder usr) to your MMC card in your nokia. see below or other more complicated posts.

E4. I'm a total non-hacker so I just uploaded the skyhost folder on my PC to my gmail as an attachment. Then I downloaded the attachment from the nokia onto my MMC card

F. Start the application Xterm (becomeroot is running in the background so no need to start it)

G. Type the following (thanks sdrman):

sudo gainroot


cp -f usr/bin/skyhost /usr/bin

exit

H. And to clean up: DO NOT do this as root!!!

rm -r usr/ etc/

I. I did it! Hopefully you did too. As others have mentioned, in the echo test in skype you get an error message saying no common codec. I was able to call my own moblie phone and both hear and talk from both sides.
So Start Skyping you freaks!
Thanks to all the posters for their help and I hope the amount of mentions I gave were appropriate.