Renaming Contacts in Skype

When you add a Skype user to your contacts list, the name that is displayed by default is the full name from the person’s Skype profile, or if no such name exists, his or her Skype user name. If you are a SkypeOut subscriber, you are asked to name phone numbers as you add them to your contacts list. In either case, you can change the name of any contact to a name of your choice to help you better organize your contacts list.
To rename a contact, right-click on it in your contacts list. Then, from the popup list that appears, choose Rename …, and type in a new name then press the enter key or click elsewhere with your mouse. The name will change and the entry will reposition itself in your contacts list based on alphabetical ordering (within the group to which it belongs.