At the Consumer Electronics Show in Las Vegas, our friends at Engadget were able to go ears-on with the upcoming Skype feature for PSP. The UI and sound quality were commended -- "pretty decent" according to the team.
Unfortunately, there is one major flaw holding the feature back. "The only caveat is a bit of lag time in the audio transmission, less than a second but enough to be noticeable." A second of lag isn't too bad, especially for a free feature. However, those that wanted to use SkypeOut to make calls to traditional phone lines may find this unacceptable. We're going to have to find out for ourselves when the firmware update goes live at the end of the month.