I also use Skype regularly. It's performance has been very good here.
They have an interesting design model. All of the connections are managed from servers in England. I believe the connections themselves take as direct a path as possible.
Ed, I expect that you're encountering propagation delays due to the techniques the government there uses to monitor communications.
Clint, it could be internet service provider problems (they may filter or prioritize certain types of traffic) or (if you're using dialup) the speed of the last leg of the connection.
Marc
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