I have skype 1.4.0.99, on 7.04 ubuntu AMD 64. Now I have Skype working fine to make calls etc. However when a call ends, either via my side or the other caller, the skype instance does not close, and runs in sleeping mode in the background. So, if I open skype again I get the "There is another instance of skype running" message. I also never hear the hang up notification sound. Any ideas?

Is skype supposed to exit after end of call?

Ahh I think I may not have been clear. The call its self (even tho I have hung up and ended the call )is still active so if i place another call, skype tells me i still have one active. The only way to end it is open the sys montior (or terminal ) and kill the process of that call.