Thanks to iamtim for the heads up.

I started experiencing problems with my text messages not sending, connection to live messenger failing and false email accounts in my two email accounts. Did many reboots and nothing fixed it.

Posted about it and IAMTIM said he heard of issues with Skype, so I removed Skype, rebooted and my phone is pleasant to use again! Looks like a problem with Skype for sure.