One of the most talked-about and recently released applications for the iPhone is Skype. As a popular audio and video conferencing system for the desktop, Skype has finally been ported to the iPhone and iPod Touch.

Like its desktop sibling, Skype for the iPhone can take and receive calls, instant message, and call telephones (With Skype Credit). Unfortunately, mobile Skype can not transmit or receive video chats, or file transfers. Additionally, you can only perform audio chats when using WiFi.

As an actual Skype client, the iPhone version works fairly well. I had a few hiccups here and there, but a simple application restart seemed to fix the problem. The interface is nice, and resembles the actual phone. It also integrates with the Address Book so that you can bring in contacts to your Skype list.

As a free application it’s worth a download. Heck, one million other people have. You can find it in the App Store, or see more information at Skype.com