The Skype settings tell Skype Forwarder which format of sound Skype is using so that when its cable driver is inserted into Skype it will match the settings Skype is using.
Versions:Skype Forwarder is able to check periodically if there is an upgrade available. This requires it has access the internet. You can disable this or have it ask for permission. It is a good idea to check occasionally and an even better idea to let the software do this for you. If a new version is available you will be notified and presented with an option to view the latest change log. This way you are insured you always have the best possible product.