The bigest new feature is the ability to send text messages (SMS) using Skype credit. They also added voicemail support and improved dialing help when calling phones.
According to the official Skype blog, "we've made some improvements to the look and feel, particularly when calling phones using the dial pad."
You can download the update in iTunes, or even better just launch the App Store on your iPod touch or iPhone and then tap Updates to get the latest version of all your apps!
Some things I would have liked to seen in this release:
- Push notifications (Skype might have to haggle with Apple on this one since Apple places restrictions on third party apps that can run in the background on the iPhone. Though I should add 'push notifications' is Apple's compromise between a full background app and the ability to at least get 'notifications' that something happened in an app that isn't technically running in the background)
- Video conferencing support - Though that probably isn't coming any time soon.