I installed Skype and did a video call to Mexico and it worked wonderfully, but afterward IE8 started acting strange. It shut down JAVA and FLASH plug-ins and even questioned Windows Live Writer. As Skype was the last program I had installed I uninstalled it and IE8 was a very happy guy again.
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Because Skype is badly behaved, attempts to read the BIOS and generally ignores DEP. If you have IE7's DEP protection on you'd see the same thing. IE8 enforces this I believe.
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Skype 4 also not working? Chatting seems to work great in 7 with Skype 4.
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Use the Skype 4.0 beta on Win7: http://www.skype.com/download/skype/windows/beta/
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