Hi, It can be easy to peel (saw this on Saturday Kitchen Live a few weeks ago) and tried it....You need a speed peeler and hold the ball end (sorry) and scrape away from you. Also peel the remaining part as you would an apple.
As for the skin...it is safe and just needs a good wash first. Jamie Oliver did a butternut squash curry a while back and he just threw all the ingredients in.
I love spicy butternut squash and sweet potato soup (try Asda's recipe with ginger and cumin) or use roasted red pepper instead of the sweet spud
x