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The VOIP321 from Phillips does NOT connect to your wireless router. It requires to be plugged into a USB port on a WINDOWS ONLY desktop computer, which needs to be left on/logged-in with Skype running to send and receive calls. It wont work with Vista either.
Additionally Since Skype Version 188.8.131.52 (Release date: November 19, 2008) and all later versions (including Skype 4 Betas) the software Phillips supply no longer works with Skype and the VOIP321 phone. The latest VOIP321 <a href="http://tinyurl.com/6b2xrp" rel="nofollow">driver from their website</a> suffers the same issue, even though it states "The VOIP321 USB Phone Driver V 3.8.3 which can be downloaded from Philips web site is compatible with Skype software version from V2.0.0.x until V3.8.0.x". This is plainly no longer correct with the latest stable release of Skype, V184.108.40.206.
Skype developers are <a href="https://developer.skype.com/jira/browse/SPA-599" rel="nofollow">unable to do anything about it</a> and Phillips wont update their driver (Quote "... no more development/fixes are being incorporated into the VOIP321.EXE file"). Phillips would probably rather sell you a newer bit of hardware.
Don't waste your time on Phillips Skype phone devices, as their driver support is lacking when Skype is updated, so you buy a product for a few hundred dollars and it becomes useless 12 months later.
Another reason to not purchase the Phillips Skype phones is that it is Windows Only. No Mac or Linux support or drivers offered.
Just got the phone myself. I can only offer the same advice I would give to any other usb related problem.
first, put the usb device in another usb port. Then uninstall the software, then reboot and reinstall. You sound like you know what you are doing so I am guessing you have already tried this. God luck with your search for the answer.