I use my son's ipod 4G to Skype. I don't use the video much, just the voice. If you turn the ipod upside down when you skype, the speaker and mic will align to your ear and mouth.
I use a headset with stereo earphone and mic. it has 3.5mm jack with 3 connections and ground (L/R/mic/ground), which plugs into the ipod jack. Works perfectly for skype calls.