Specifically, Skype has changed the permissions of the databases (which contain the personal information) in question. This update will not remedy the vulnerability on the leaked video version of the app, so continued use is at your own risk. Skype will incorporate the fix into the video version of the app when it is officially released.
Another notable addition to the update is 3G calling in the U.S. Previously, calling in the States was only available via Wi-Fi (unless you're on Verizon, which has a special version of the app).
The new version of the Skype app v220.127.116.113 is available in the Market now.