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Try Audacity
Submitted By: codecraig ( 230 days, 12 hours, 49 minutes ago )
Check out a href="http://audacity.sourceforge.net/"Audacity/a, it's opensource (i.e. free) and does a lot of cool things!
Submitted By: mister.joshua
I actually have Audacity, and I couldn't figure out how to record straight from the sound card.
Submitted By: mister.joshua
I don't think this is possible. There's a tip on the Skype website that points to this article http://www.makeyougohmm.com/20030930/265/ that gives a tutorial on using Audacity to record calls, but it requires you to use two computers. They also link to a Skype plugin that either records in a proprietary format or costs $15. With all the people ripping audio streams, I figure there has to be an easy way to do this, but it's not with Audacity and not on Skype.com
Submitted By: Murphy71984
There is a way to record from the sound card. Below is a screenshot. http://img230.imageshack.us/img230/7593/capture0157pp.png
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Try Free Hi
Submitted By: berserc ( 230 days, 12 hours, 4 minutes ago )
I used Free Hi
Submitted By: berserc
Free HI Q http://www.roemersoftware.com/ I used it to recored a stream and it worked pretty well. Windows only :( [post was truncated for some reason]
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mp3mymp3
Submitted By: frickindeal ( 225 days, 21 hours, 15 minutes ago )
It's an unwieldly name for a superb little freeware app.

Get it at mp3mymp3.com

If you can hear it, this thing can record it.
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HardDiskOgg
Submitted By: AnotherBrian ( 225 days, 20 hours, 50 minutes ago )
<a href="http://fridgesoft.de/harddiskogg.php">http://fridgesoft.de/harddiskogg.php</a>

Just like in Audacity, you need to select the proper input to record from. Just like in Murphy71984's pic it should be Stereo Mix, this is the channel on the sound card that all the programs (Skype) running on the computer send there audio output to.
Submitted By: AnotherBrian
http://fridgesoft.de/harddiskogg.php
(stupid linker)
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GarageBand for Mac OS X
Submitted By: voicesdotcom ( 14 days, , 17 minutes ago )
If you're running a Mac, use the pre-installed GarageBand audio recording software.