I tried to upload a new profile picture, skype rotates it 90 degrees the wrong way and there seems to be no way to correct this.
I tried by turning the picture itself 90 degrees to see if that would fix it but skype continues to change it the wrong way, yet other pictures I have which are 90 degrees wrong facing get auto corrected by skype.
I tried by using a picture taken on my camera, and one from my phone and get the same issue.
This pc does not use a webcam and is currently using windows 8 64bit.
Try to reset Skype Settings