I did it!  I fooled around most the day yesterday with horrible results.  The person on the other end of the Skype call sounded like she was in the middle of a long metal tube.  Today, I opened Audacity and realized that I missed a setting... I forgot to change the drop-down box to "Wave Out Mix."  Once I switched it, it worked!   I decided to add some music to see if I could do it.  The music does not go with the recording at all, but I think I was successful in completing the assignment!