Skype for Windows Phone 7 has ditched the beta label and been updated to version 1.0.

The new update, released by Microsoft, adds the ability to search for and add new contacts, as well as call landline numbers from the app over Wi-Fi and 3G.

The app also improves stability and fixes some bugs, according to Microsoft. 

Sadly, however, there is still no background functionality in the app. As soon as you exit the app you will be disconnected from Skype.

However those who have used the background functionality of the iPhone or iPad version of the Skype app will know that battery life is heavily affected when it is running. We hate to think what the affects would be on the Nokia Lumia 800, for example.

Officially Skype tells us: "This issue will be fixed in a future release but timing is to be determined."

Skype for Windows Phone is also now available in 18 languages: English, Danish, Dutch, Finnish, French, German, Italian, Japanese, Korean, Norwegian, Polish, European Portuguese, Brazilian Portuguese, Russian, Simplified Chinese, Spanish, Swedish, and Traditional Chinese.

The new update is available now in Marketplace.

- Skype for Windows Phone 7 reviewed