Logging on today, I was surprised to see my custom skin is showing up as Steve. Thinking it was an issue with my skin format (the old 1.7 one), I updated my skin to the new 1.8 skin format (the advanced customization one). I uploaded it to my profile and waited a while before opening the Minecraft Launcher and booting up Minecraft 1.7.7.

I have tested this on both Single Player and Mulitplayer mode, and I have made sure I am not is the "Play Offline" mode available in the Minecraft Launcher.

Any Help would be apperciated!