Fring is the only way to use Skype on the iPhone at the moment and you will need to jailbreak to install it. I expect they will release it through the appstore when that's launched, Apple said they would allow VoIP programs.
Fring is certaintly an important breakthrough in introducing Skype to the iphone. But don't expect too much from it, I found the call quality to be terrible. It is only a BETA, so it will improve with time.
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