Comment 57 for bug 449855

To recap above suggestions, here is what worked for me:

9.10 (Netbook Remix) Asus EEEPC 1005HA
Enable Unsupported Updates (karmic-backports)in Synaptic Settings → Repositories → Updates

sudo apt-get install linux-backports-modules-alsa-karmic-generic
sudo apt-get install linux-backports-modules-karmic' (for wireless, should be unrelated)
reboot

Install Skype:
echo "deb http://download.skype.com/linux/repos/debian/ stable non-free #Skype" | sudo tee -a /etc/apt/sources.list > /dev/null

sudo aptitude update && sudo aptitude install skype

sudo apt-get install pavucontrol
Open Pulse Audio Volume Control, unlock Input Devices, made Front Right 0 and Front Left 100

Skype now seems to be working properly. Thanks for all the help everyone!