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It doesn't mean anything other than it was deactivated. A blocked ESN, on the other hand...Just out of curiosity, if a Droid is deactivated, does that mean it is either lost, stolen, the account holder has not paid their bill, or they have manually deactivated it?
If you use Fring, you can do Skype calls over wifi.
SIPGate One if free and gives you a CA number with free incoming calls. I think they just need a number to text the validation code to make sure you're in the United States.
You can use Google Voice app to initiate a call where it will call the SIPGate number to make an outgoing call and have SIPDroid or Fring running to answer that incoming call or you could set it up with SIPSorcery where you can just dial any number you want like a regular phone. Both will work fine. Using the Google Voice app may be easier, though.