Found out by searching on the Net and reading other peoples problems with this phone, that you can only make a "Skype" call from the handset using numbers that are in the "skype" address book on the computer. The address book in the phone can only be used for making "landline" calls. There is no mention of this in the user manual/instructions book.
In view of the fact that you didn't help me solve this problem I don't think you should debit my Paypal account.
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The instructions on the setup disk and the manual which came with the skype GE 2 line phone are inadequate. I just wiped out the phone installation, as well as the skype installation, and then reinstalled them both. After installing the phone, I went to make a skype call, from the keypad, and, indeed, it was dialing properly and call was made, so everything started working, so the disk used to install the phone worked, but not in the way described in the manuals -- wasted 2 - 3 hours due to poor documentation.
I emailed Binatone about this problem. They first suggested that I go into SKYPE tools, then options, then advanced and check the Binatone phone was allowed access to SKYPE. It was, they suggested I reload SKYPE.
I made sure the Binatone phone software had been loaded correctly, then I reloaded the Skype program. The icon for the phone was still red with a cross through it, but them about 20 minutes later the icon turned green and had the message USB phone - connected, SKYPE - connected.
Fingers crossed it has been fine since then.
Hope this works for you as well.