I do this for a podcast I produce and use Audio Hijack Pro for this. It isn't free though... I don't know of any freeware that'll do the job to be honest, but Audio Hijack is cheap. Can't help on the video side though, sorry. There might be a Skype plugin?
Edit: I ask this because recording "What You Hear" has traditionally not been exactly easy on the Mac, hence the little 3rd party apps. Is this something that got added in Audacity or Leopard?
Worked succesfully. I simply open up a skype conversation and clicked 'record' in audacity. Recorded the conversation. Then exported it to a .wav.
Perfect
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