I'm not sure if this is specific to the 8525, or if this problem is common among other phones. Rather than giving a detailed explanation, I will summarize what I have noticed with this phone.

There is no problem connecting to skype, first of all. Everything seems to work fine. The problem only occurs when I 'dislodge' the power supply from my phone. IE- if the phone is running on battery, and I turn on skype, and then plug in a power supply, I get power. Once I dislodge the power supply and try to plug it back in, I get nothing UNLESS I put my phone into sleep mode.

This also happens after I close skype. Even if it's removed from the running programs list I still get the same error.

Anyway my question is - is this related to skype.
I've done some tests and came to the following conlusion:
Internet Access is glitch free
Internet Explorer is glitch free
Windows Media Player (using HD and internet) is glitch free
Skype seems to have a glitch of some sort.

I did my best to rule out any other possibilities. I'm not sure if anyone else has noticed this glitch on other phones but have documented it thoroughly. For now, turning off the power and turning the phone back on is the only way to solve the issue as far as I know.