Timmy, Skype is VOIP but there's a difference. Skype as started and still is a program you download, install and then you have a skype name anyone can call your computer and you can voice chat for free.
Now, they have upsells, you pay like $60 a year for an incoming number so that regular phones can call you and unlimited calling to the US & Canada. You can use the incoming number and outgoing from any computer once you sign into your Skype account.
They also have these Wifi phones, which looks like a cell phone but it's not it's a special phone that connects off your home's wireless network. The one I bought happens to be braned to work with Skype, so it's just like having another phone. In fact if they offered 911 service, I'd buy a second phone, give it to my mother, and drop our landline.
Just this past week Skype came out with an application for the iPhone and iPod touch so you can now use them as a Skype phone, which is pretty cool.
Hope that explains things.

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