Total Recorder is very close to making this work. Unfortunately the latest version didn't work for me... They have a sound driver that should be able to access both the Wav out signal and the Mic signal independently. And the latest Total Recorder has settings specifically aimed at VOIP recording. But it wouldn't play nicely with Skype and refused to record when using the driver. It worked fine using the standard windows driver but then we're back to problems with level setting and getting the Mic played back in the headphones.

Most of the modern sound cards have option to record mix which will capture output signal from wave channel AND input signal from microphone channel.
Just select "Stereo Mix" or whatever mix option you have and record with Cooledit or and that's it.

Tried it, it works perfectly when levels are all set properly. You might want to turn off mic boost if there is any and raise the level on the "Record" panel and then lower the level on "Volume" panel so there is no microphony / echo.

I haven't yet tried this but ARW seems to work with just about everything!

Audio Record Wizard from http://www.nowsmart.com/arwizard/

Hotrecorder works great!

So, what will you use to record video conversations?

In the UK, if you're recording a conversation and intend to make it available to a third party (e.g. podcasting) make sure the other person on the call has consented to it being recorded.

Skylook offers a very simple to set up feature that saves all Skype conversations automatically to a folder in Outlook (as MP3 attachments). You need Outlook 2000/XP/2003 + Skype 1.2 or later. www.skylook.biz

Here is a screenshot which shows exactly how to record a call with Skype (or any program) and Virtual Audio Cable. I think it's easier to follow than other descriptions. A picture is worth a thousand words...

Hi, try our PowerGramo solution on windows. www.powergramo.com
I am confident enough that it's he most convenient one in the world.

Best
Jirong

I don't, I've tried all of the above suggestions, but the best solution as for now currently seems HotRecorder v.2.01.
It works with Skype, Google Talk, Net2phone, AIM, Yahoo! Messenger and Firefly.
The basic version is free and allows up to 1 minute of voice recording.
HotRecorder saves the call in a proprietary format (ELP), which is about the 10% of the same MP3 file, but it can be easy converted in WAV or OGG with the convert tool available in the registered version (now offered at $14.00).
You can also use AudioCity + HotRecorder of course, to save your calls in MP3 format even in the free version.
More infos at: http://www.hotrecorder.com

Check this solution:

http://www.pooryorick.com/pub200509/SkypeRecordVac.html

I've used the basic version of total recorder many times and it works fine to record skype calls. Audio and Mic have to be be set to record/audio through total recorder and then in total recorder you have to set the source menu option to the software->telephony selection. For $12 total recorder is a steal and has many other features such as recording streaming audio to mp3. http://www.totalrecorder.com

This works http://www.powergramo.com/ and also this too http://www.abyssmedia.com/

PowerGramo:

and the new Pamela professional:

both work just fine for recording calls and creating podcasts. where i live (texas) the law states that you can record calls just as long as ONE person on the call knows that it is being recorded! go figure...it IS texas, after all

you want to record call, i will give you some advice, may be you can use 123 Sound Recorder , it's a very useful sound recording tool.

I use 123 sound recording tool as well. It is really easy to use and reliable. give it a shot!!
For outsourcing voice, chat, email or back-office support, visit the website of Aumenta Call Center, India.
http://www.aumenta.cc

Precisely. When i tried to record my skype conversations with my client, i realized was that all i could hear was my own voice. tat was an important conversation. thx to u i can now record two-way convos.
For outsourcing voice, chat, email or back-office support, visit the website of Aumenta Call Center, India.
http://www.aumenta.cc

3D MP3 Sound Recorder (Audio Playback Recorder ) is a sound recorder software. with 3D interface that allows you to create digital files from any audio that can be played through your computer's sound card, regardless of the audio source.

Very good skype recorder - PrettyMay.
It is really easy to use and reliable.

http://www.prettymay.net

Check out the free new tool of SoliCall (www.solicall.com), it will do the trick.

There are a lot of Skype Recorders around.
The poorly named PowerGrammo integrates with skype and can even be downloaded from the Skype website. (It's a plugin) or direct from
www.powergramo.com
It's the one I use and it's fine. Record quality is OK with ogg compression, just fine as a wav file if you have a big hard disk

Folks, thanks for all of the comments above. THey helped me get started with taping a Skype conversation.
Can you help me level a taped Skype conversation? The voice of my party is about 2 times less strong then mine. What is the command in Audacity to equalize both voices?
Thanks much!
Plamen