Given it's low MHz CPU, low ram and more, I'd skip investing any time on this.
http://www.skype.com/intl/en-us/get-skype/on-your-computer/linux/post-download/ notes that even linux has the 1GHz CPU, twice that ram and more.
As to a Skype for Windows ME, please do that research. It's at skype.com and easy to answer.
I've got a old notebook: siemens scenic mobile 360 and a columbian friend as well, who could use it to chat and call (using skype) his relatives.
I think I'm going to find many problems:
1) at first sight: It hasn't a LAN port!
Can I use a external lan board?
2) could this hardware (http://www1.dealtime.co.uk/Fujitsu-Siemens-SCENIC-Mobile-360-S26391-K88-V537/prices BUT IT HAS RAM UPGRADED TO 128 MB and it runs win millennium edition) support an external LAN board?
3) could this hardware run skype and have calls (maybe it's better not video)??
4) could this hardware run windows xp? (is there a skype version for win ME?)
Hope you can help me.
thanks a lot!