Well the Eurozone set out to record both ends of a Skype call using Virtual Audio Cables and I can report success from my end. So Anne and Dennis I can talk through this with you - and indeed anyone else. However I found Jeff's original screencast having done this!. (Had this disappeared for a while?)
Anyway, I created my own shorter version screencast. In Jeff's there are some handy tips so if you haven't seen it, check it out.
Taxonomy upgrade extras: