Well lemme tell you that Skype did a shitty job with the Android client. Hell, call it shitty is a compliment.
So after all the complaints raised against it, Skype takes more than a month to fuckin' add the option to move it to the SD card, BUT they increase the size from 7 Mb to 10 Mb!
FUCK YOU SKYPE!
V, go into Settings>Applications>Manage applications>Skype and force close it. Then open it again and see what happens.