I am not sure how I hadn’t heard of this before (maybe because I went out of town the last 4 days and didn’t even take my laptop!) I was ‘off the grid’ for a while….really enjoyed it, actually.
I downloaded the application from the iTunes store, entered my information (you need to have a Skype account) and it loaded up all my contacts and was working immediately.
The idea is to be able to use the iPhone and make calls without using AT&T minutes. The application will only work over Wi-Fi, but you can call your contacts directly (no video). There are additional features for allowing you to join conference calls and more to come.
If you have the iPod Touch, you will need to hook up a microphone or the headphone/mic combo like the iPhone in order to get the most out of the application.