I recently installed Skype on Ubuntu 10.04 - Lucid Lynx, and for the main part it works great out of the box. However if you are using the dark Ambiance theme that ships with Ubuntu 10.04 then the context menus will be dark text on a dark background, meaning you cannot see any of the options.
This can be easily corrected by selecting the Skype button in the bottom left and then selecting options (text shows up in menu when you hover over an item)