Skype out on Mac bad quality after update to Version 7.9 (746)

Hey, I've been using skype out on a subscription calling from US to US or Canada, for over 2 years now. After the latest update (on 7/1 I believe) skype out on my computer became unusable... everyone complains that they can't hear me properly. But when I call the same person with my cell phone(on the same WIFI) they hear me perfectly... same headphones too. Anyone else dealing with this? I'm thinking of cancelling my skype subscription and getting an unlimited Canada/USA cell phone package! regards,

Wow, lots of replys so fast, sorry i took so long to get back to you all.
Well thanks for the welcome.
When I say "grayed out" i mean that the botton is there but faded.. get me? Its like an option that is no longer available. e.g. while going thru normal options like FILE or EDIT and the like the options that are not available are "grayed out" or faded. And yes I am using Software Update from the blue Apple menu.
I am not well versed with the Mac, it's my girlfriend's Mac, I know a bit about it but I try not to mess with it too much.
I didnt know that I was able to update any other way (System Preferences > Software Update > Update Software) I will try this and see what I can find. But I would guess that all those settings are at DEFAULT.Is there an option to make it look for updates automatically on a set date/time or everyday/week/month? I was only trying to update recently cuz I heard that some Mac viruses were loose and I want to update her Mac. I hope to get this fixed soon.

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