1.Download and install Skype from their website. I downloaded skype-ubuntu-intrepid_2.1.0.47-1_i386.deb for my 32 bit ubuntu 9.10

2.Run sudo dpkg -i skype-ubuntu-intrepid_2.1.0.47-1_i386.deb command on terminal

3.If skype had no video , like mine did. Go Right click on the Ubuntu symbol on the left hand side of the screen. Select Internet then Skype , edit the command as follows.
env LD_PRELOAD=/usr/lib32/libv4l/v4l2convert.so skype.
While launching if it complains about missing lib32, change it to
env LD_PRELOAD=/usr/lib/libv4l/v4l2convert.so skype.

Now you should be able to launch the skype from menu Applications -> Internet -> Skype and do video chat.