I am using Ubuntu 12.10 but this same problem happened when I was running 12.04. Whenever I call someone or I get called and pick up, I hear nothing and they cant hear me. After a few seconds skype just crashes and the same problem persists again. What can I do to fix this?
I had similar issues once, with the Skype version found on the official website.
If you also downloaded your version there, then you might try to use the Skype version found in the Canonical Partner repository instead, which is optimized for Ubuntu (and especially: pulseaudio). To get this version, first uninstall your current Skype installation and then follow this guide:
A recent update to the pulseaudio package included with Ubuntu 13.04 (Raring Ringtail) and Kubuntu 13.04 may be causing some users to experience a persistent background noise, or hum. It appears that this particular bug will affect VLC, Skype, and possibly other applications which emit audio. This problem is primarily affecting Intel-HDA (high definition audio) chipsets and ALSA sound drivers in regards to "glitch-free" PA (pulse audio).
Modify the following line in /etc/pulse/default.pa:
Change load-module module-udev-detect to load-module module-udev-detect tsched=0
Source and Complete Guide: UbuntuLinuxGuide.com