I am so astoundingly frustrated with skype - I'm having the same problem other people in the thread have mentioned:

a) no video calling options despite it being enabled in my settings and the other person having a webcam, the latest version of skype and a windows 7 pc.

b) the option to IM someone if they're offline or invisible on skype is gone completely. the ONLY way I can do it is if I go into conversations, tap the menu, choose the "send IM to.." option and manually enter their skype username.

c) if I don't log out of skype on my phone first before I log in on my PC, it will sync my chat logs between skype and the phone...an awesome feature on PR 1.1.1, but on PR 1.2 if I'm the last person to have said anything in the conversation, it corrupts the IMs on my N900 and thinks I'm sending IMs to myself with the "internal error" message on the convo. deleting the convo and thus losing the logs is the only fix.

disabling and re-enabling and even deleting and re-creating my skype account on my N900 doesn't fix it at all and I didn't re-apply my backup after I did the OTA update so I'm not sure if that might help...I'm considering downgrading back to PR 1.1.1, because at least that was reliable for me...not being able to IM offline or invisible skype contacts is just ridiculous.