Two examples to illustrate this:<br/><br/>Two characters, one Fighter 20, the other Fighter 10 / Sorcerer 10. Both have Fighter as their favored class and have 10 Intelligence for 2 skill points per level and are NOT human.<br/><br/>The first one gets 3 skill points per level if he chooses +1 HP as his favored class bonus, for a total of 60 at level 20, 20 of which must have been spent on a Craft, Perform, or Profession skill. If he chooses +1 skill point as his favored class bonus, he'd have a total of 80 at level 20, 20 of which must have been spent on a Craft, Perform, or Profession skill.<br/><br/>The second gets has a total of 50 skill points at level 20, 10 of which must have been spent on Craft, Perform or Profession. If he chooses +1 skill point as his favored class bonus, he would have a total of 60 skill points, 10 of which still must have been placed into one of the three, since only 10 of his levels are favored.<br/><br/>Does that make sense now?<em>Regardless</em>of which favored class bonus you choose (+1 HP or +1 skill point), whenever you take a level in a favored class you get an<em>additional</em>+1 bonus skill point that must be placed into one of those three.