I think the Skype installer was trying to implement a setting in Windows 7 and later (but in XP) that mutes/reduces all other sound when it thinks you are using communications software like Skype. Since the setting isn't in XP, it ended up killing all sounds all the time (whether Skype was running or not) other than Skype, and not all of Skype to boot! You could talk and listen on Skype, but you couldn't hear it ring nor hear voicemail greetings, nor voicemail recorded for you.
This entire updating and installation of Skype took us about 90 minutes, which is about 80 minutes more than I think it should have taken. But it seems to be working now, except that every time you launch the program on her computer, it prompts you to update it. But it won't actually update if you say yes on that screen.