Feb 2016 Update: A commenter alerted me that the following method may no longer work properly. Skype has been making a lot of software updates that could have altered the proper instructions.

The newer versions of Skype (6.5.0.443 as of this post) have an auto correct feature, which while great in theory sucks in practice. By default Skype is configured to automatically correct spelling as you type. If you are having a simple conversation it could be useful, however for anyone in a professional or technical realm it creates additional pains where you are constantly going back in a message and correcting the auto correct with the technical terms before sending a message. Lame.

Auto correct settings to the rescue! It is easy to turn off auto correct while typing with the following steps:

• Click the Edit menu
• Mouse over Spelling and Grammar
• Uncheck Correct Spelling Automatically

You will still see the red squiggle for words Skype thinks are spelled incorrectly, but power is given back to you for controlling your message.