The latest update to Skype improved the UI and added a much asked for feature in portrait calling, but unfortunately the rest of the app is locked in landscape. The portrait calling seemed like a no-brainer fix, especially considering many smaller tablets -- like the Nexus 7 -- have camera setups meant for portrait orientation. The unfortunate bug (or at least we hope it's a bug) is that for now the rest of the UI is locked into landscape orientation. This means that browsing your contacts and initiating calls is all in landscape, then you have to rotate the tablet to hold the call.
Overall the new UI is great and pretty well mirrors the styling of the phone UI, but the perpetual landscape really puts a damper on things. Let's hope Skype pushes out a new update to add back in the portrait support, and in the meantime we can at least enjoy portrait video calls.