CD skipping effect

It's quite easy, although on this track it doesn't even sound like the normal stutter effect.

The easiest way to do it is: render the section of the song that you want to stutter to a stereo wav and reimport it. Then cut it up in 1/32nd or 1/64th and delete every other one. If it pops & clicks too much: make a little fade in/out for each segment.

Choose the gaps depending on how fast it should be.

Done. The manual way is the easiest.
 
although the way smy1 explains how to do this definitely works (his way is the way I did it in my band's song No Sympathy For A Siren when the vocals come in on our myspace in my sig) there is another way to do it that makes it much more obvious that the skipping effect is taking place
Like in the beginning of Chelsea Smile by Bring Me The Horizon (http://www.myspace.com/bmth) the more obvious stutter effect is achieved by taking a very small sliver of the audio clip you which to loop and copying and pasting that SAME clip over and over again
space them out or put them right next to each other
it doesn't matter
it all depends on the effect you are going for