Hi Kirk,
I’ve used the PS3-EYE with Skype a number of times and both the microphone and camera work fine together.
You might want to double check the settings have all been saved within Skype. On the bar where you initiate a video call try the check settings button to make sure everything is working. Sometimes the PS3-EYE doesn’t initialise first time for me. Ill just select another device from the drop down and then reselect the PS3-EYE.
Make sure you’re running the most up to date versions of the CL-EYE driver and Skype.
Let us know how you get on.
-KS