I have installed Skype in HTC Magic from Android Market. That is Skype Lite. That is different from Skype Mobile Version in Windows Mobile. It cannot support SMS. And I tried SkypeIn, it seems to be not working. Moreover, I tried SkypeOut, that needs to dail a local number. For voice chating, it needs to dail a local number as well. But the text chating, it supports that. For VOIP, I think we still need to wait for the full version available in Android.