ooh, that sounds like fun. i can't wait to hear it.
here's how you use audacity to do it:
(1) SET UP AUDACITY
Run Audacity; Go to File -> Preferences -> Digital I/O -> Recording and choose a “Digital Audio”-class device rather than an “Input”-class device (which will replace microphone input with combined microphone and speaker recording); choose to record two channels of stereo; finally, close Preferences, and choose “Wave Out Mix” as the source of signal on the main window of Audacity;(2) SET UP THE SOUND DRIVER
Go to Control Panel -> Sounds and Audio Devices -> Volume -> Advanced and make sure the microphone is not muted; you may also want to click on “Advanced” settings for the microphone and check “MIC Boost” to amplify your voice.
(On Vista, like me, you'll need to go to Control Panel\Hardware and Sound\Sound\Recording\Microphone\Properties\Levels)
(3) USE AUDACITY AND SKYPE
During a conversation, you can start recording in Audacity at any point (big red button
); Audacity allows to export recordings in WAV, MP3, and OGG formats; for MP3s, you will
need lame_enc.dlldon't underestimate audacity