Skype 4.0 for Windows graduates from beta
The most noticable change in Skype 4.0 is the fact that the desktop client takes up a lot more space. The call window and the contact list are built into a single screen, while earlier versions of Skype had two separate windows, much like your typical instant messaging client. This change didn't sit too well with early beta testers and Skype 4.0 now gives you the option of viewing the "default" window mode or a "compact" mode which looks more like earlier versions of Skype.
Skype 4.0 also includes higher quality video calling for users with 400 Kb/S or higher connections and high quality video cameras. The new client also features improvements in the audio quality due to a new bandwidth manager.