Here is the Solution:

Windows Users

If the Skype icon is displayed in the system tray at the bottom right of the screen, right-click it and select Quit.
Click Start, type “run” and press Enter. (On Windows XP: Click Start and then Run.)
Type “%appdata%skype” and click OK.
Locate and delete the file shared.xml. The file may be displayed as shared if file extensions are not displayed by default on your computer.
If you cannot find this file:
Click Start, type “run” and press Enter. (On Windows XP: Click Start and then Run.)
Type “control folders” and click OK.
In the View tab, ensure that Show hidden files and folders is enabled.
Repeat the instructions from the beginning.
Restart Skype.

Mac Users

Open Finder and locate the following folder:

~/Library/Application Support/Skype
Delete the file shared.xml.
Restart Skype.

The ~ sign means your home folder. You can find your home folder by opening Finder and selecting Go > Home from the menu bar or pressing Command (Apple), Shift and H keys at the same time.

Linux Users

Go to the following folder:
/home/YourLinuxUserName/.Skype
Delete the file shared.xml.
Restart Skype.

The Skype folder is a hidden folder – please check Show hidden files in your file browser to view and access it.

via skype.com

Skype is an absolutely useful application that we use almost regularly to communicate with clients / friends / relatives far away from us. In recent past few versions of skype have ben a bit buggy. It says “Skype has Stopped Working” suddenly when you are trying to restart skype after your last shutting down your PC.

I have attached the details of the error in the screenshot. Please check and suggest any solution. It was all working great till last night. Suddenly this is the problem since this afternoon, when i tried calling a guy who was offline.