Have you tried dragging a corner of the Skypewindow tomaker it larger, or clicking on the full screen button in the upper right hand corner?
06-01-2013 20:32 - edited 06-01-2013 20:33
With any of the recent Windows versions clicking on the PIP window once will toggle it between very small and larger. Once it's in the larger size you can then drag a corner to make it bigger yet and you can also move it to any of the 4 corners on the Skype window.
Clicking on the PIP once again will toggle it back to the very small size.