I got the answer from the OpenCV Stack Exchange site. Answer
THE ANSWER:
I bet you are using the current OpenCV’s master branch: here the return statements have changed, see http://docs.opencv.org/modules/imgproc/doc/structural_analysis_and_shape_descriptors.html?highlight=findcontours.
Thus, change the corresponding line to read:
_, contours, _= cv2.findContours(skin_ycrcb, cv2.RETR_EXTERNAL, cv2.CHAIN_APPROX_SIMPLE)
Or: since the current trunk is still not stable and you probably will run in some more problems, you may want to use OpenCV’s current stable version 2.4.9.