The location of the password hash is here:
C:\Documents and Settings\Danny\Application Data\Skype\USERNAME\config.xml
"Skype produces a hash of the user password and uses that hash to authenticate/store the login info locally (hash is transferred over the secure channel to authenticate).
As Fabrice Desclaux and Kostya Kortchinsky tell us in their paper, Skype uses MD5 hash of ???username\nskyper\npassword??? to authenticate. The same hash is stored in the config.xml file (C:???Documents and settings??? Windows Username ??? Application data ??? Skype ??? SkypeUsername ??? config.xml). In fact, this MD5 hash is then encrypted using AES and SHA-1 before being stored in the config.xml."
http://blog.reactive-software.com/skype ... -recovery/