Skype Widget
Here is the page for my Skype Status Button Widget. Download Skype from here.
Instructions for installation.
First you will need to allow your online status to be seen. In your Skype client go to ‘Tools’ then ‘Options’ and select the ‘Privacy’ tab. You will need to click on the box next to “Allow my status to be shown on the web”.
Next you need to download the widget from here: Skype Button V2.0 Zip file. Extract this file and upload the folder ‘SkypeButton’ to your WordPress Plugins folder on your server.
Once uploaded you then need to activate the plugin; log on to your blog’s admin page and got the the “Plugins” tab. Scroll down to “Skype Status Button” and click “Activate” on the right hand side. The page will reload, an info bar will say “Plugin activated” and it will look like this:
Now click on the “Design” tab (“Presentation” in previous versions of WordPress) and then on the “Widgets” sub-tab. You will now see a box with the title “Skype Button” in it. Drag this to the desired position on your sidebar(s) and click on “Edit” (the small options box in previous versions of WordPress). This will show this form:

Here you can change your title from the default “My Skype Button”, add your username and add text under the button. You can change the button style from either of these two:
“Big Classic”:

“Balloon”:

Your Skype Button will now show up your sidebar, just like mine does:

You can download the PDF file that explains how I wrote this plugin here: Writing a WordPress Plugin using PHP
SkypeButton V2.0 has been tested on WordPress version 2.5.1 without any problems.
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