Skype hanging on Sign In

I am no longer able to sign in after upgrading to Skype 7 on Windows 7.
The program just hangs and then gives the following message:
We cannot start Skype becuase your system is unavailable.
Please trying restarting your computer and try again.
I get the same thing after restarting.
Can anyone tell me what the problem is?

Try to reset all Skype settings.
Quit Skype or use Windows Task Manager to kill any Skype.exe process. Go to Windows Start and in the Search/Run box type %appdata% and then press Enter or click the OK button. The Windows File Explorer will pop up. There locate a folder named “Skype”. Rename this folder to something different, e.g. Skype_old.
Next go to Windows Start and in the Search/Run box type %temp%\skype and then press Enter or click the OK button. Delete the DbTemp folder.
Restart Skype.
N.B. If needed, you will still be able to re-establish your call and chat history. All data is still saved in the Skype_old folder.

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