First, cancel the Automatic Update request.
Next, discover the name of the file Skype downloaded and delete it (Remember the name though – write it down!) … I used “Windows Key+R” (Run) and gave it %Temp% as the search argument to find “SkypeSetup.exe” in my C:\Users\”YourName”\AppData\Local\Temp folder. Right click and delete it. Now look for any zero length files in your temp folder and make a copy of one of them, renaming it to SkypeSetup.exe or whatever filename Skype used on your system.
Now the tricky part. Right click on the new file you just created and ask for properties. Next left click the security tab then left click the advanced button. Now left click “Change Permissions” and then “Add”. Enter “Everyone” (without the quotes) where it says, “Enter the object name to select (examples):” and click “OK”. Now check the “Deny” box for “Full control” and click “OK”.
Your system should complain mightily about how you just denied access to that file for everyone and only the owner can access that file now … click “OK” … that’s exactly the way you want it!
What actually happens is that the skype downloads the updater file in your temp folder and on detecting you are running old version it updates itself using that file. If you remove that file, then it will download the same file again so the above method will work since skype will find the fake setup file as its own and it wont work in updating the program so there you have it.