Skype server took a short break
skype.com
skype.com
I wonder if all users will have to do that, because it would be a huge pain.
It's good to know it wasn't just me.
BTW, thanks to those of you who posted potential fixes.
To fix it, I first deleted ~/.Skype, then I disabled by Internet connection, then reopened Skype, then tried to login (of course it doesn't work, my net is down, but it's going in a loop mode continuously trying to connect), then re-enable my Internet connection.
Well, either that or just dumb luck, but I'm not touching it to see if the method is repeatable.
http://heartbeat.skype.com/2011/05/problems_signing_into_sky...
For me on Ubuntu - simply moving the .Skype directory and rerunning the program worked
Sigh.