Horrible! Completely agree: this window can't be resized below 400 pixels wide. Crazy. I used to have the skype contacts as a long column on the right of my screen (less than 100px width).

They do have an option to sort of still do that, but it's a floating window that appears in front of everything else, with very high transparency.

Frankly, if I could revert to the previous version with one click, I'd do it instantly.