Skype has released a beta version of Skype 2.1 for Linux.  It worked "right out of the box" and fully supports Fedora's pulseaudio system.  It also detected that I was playing music and paused it when I made and received a call.

After only a bit of tweaking and googling, I have Skype working on my Fedora 11 Linux desktop.

Step 1:  Set up a .repo file for Skype and install Skype via yum.

Step 2:  Understand it won't work with pulseaudio and install alsa-oss.  (Thanks, Jerry Feldman).

Step 3:  Set the sound configuration to use the "plughw" component for the sound card.

Skype repo file: