posting a quick note about the problem that I had after upgrading from Hardy Heron to ubuntu 8.10 with skype. There seemed to be a problem with the pulseaudio service and skype, everything worked fine with the audio i.e. playing and recording however using skype, i would get the error.”Problem with audio capture” and “Problem with audio playback”. It turns out that skype works fine with esound instead so running the following commands resolved the problem.
killall pulseaudio
sudo apt-get remove pulseaudio
sudo apt-get install esound
sudo rm /etc/X11/Xsession.d/70pulseaudio