I'm blown away... I received my first Skype incoming call on my iTouch. I just happened to be logged in to Skye IM+for iPhone on my Touch, and someone called from a landline phone number. I got a panel of three choice buttons: accept, decline, and hold, just like on my computer. I had no way to listen to the call (no headphones on hand) or talk to the person, so I accepted the call through my computer instead (I was home at the time). While I was talking through my computer, the three choice buttons remained on the screen on my Touch. After I hung up on the computer, i hit "accept' on my Touch. The next message was "connecting". Obviously it couldn't connect because i had already hung up the call. I was so stunned, I didn't know what to do next. Now I'm going to plug in the headphones, have someone call me and and see if I can connect to the call and hear what they say. If it works, all I have to do is get a TouchMod voice-in microphone and talk away! NOTE: I have the 1.1.3 upgrade and Skype Pro. When I logged into Skype, I noticed many more choices on the menu than prior to the .3 upgrade. It seems like we get all the same calling features as iPhone. That's worth the $20 bucks.