what noboy seems to be saying is that this setting is TWO places, one is hidden.
In the privacy settings
Tools >> Options >> "Allow Calls from anyone" and "Allow calls to my Skype number(s) from..)
Tools >> Options >> Calls >> Call Settings >> Show advanced setting
That last setting was what sorted this busy/engaged tone issue for me
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I found this thread via Google search. I too am having a similar issue.
I have an online number that is setup to forward to my mobile phone after 12 seconds.
The problem is that calls to my online number are automatically forwarding to my mobile without ringing on my Mac first. This happens sporatically, but seems to be happening more often lately.
Same thing is happening on my Xoom, in fact it will not log voice messages or any calls unless if log out then log back in. I get email notices though. Never happen before my renewal of subscription.
I do not have a tools menu item you must be on a M$ computer, my mac or xoom does not have 'tools'.
I'm also having the same problem that everyone here is having. Is there another service, e.g. Google Chat, that offers online numbers, but more reliable than skype?
4 weeks ago
The solution is very simple if you have an IMac, iPad, or iPhone.
1. Make sure your iPad has iOS 6.1.3 (also update iMac and iPhone.
2. Go to settings/General, then scroll down to "Use side Switch to."
3. Uncheck "Mute."
4. Check "Lock Rotation."
In the latest software update you have to select how the side switch (Volume control) works.
Happy Skype converstaions.