See Black Hat 2006 Skype Analysis.
The description of the flaw is on page 104 of the PDF, labelled as 89/98 in the slides. It is a heap overflow that allows remote execution of code, with one single source-unidentified UDP packet. The sildes also give the exact UDP packet that needs to be sent. See page 112 in the PDF for (pictorial) proof that it works.
This should be considered a critical risk, with working exploit available.
I urge all linux Skype users to not leave their Skype clients running full time.