
This is similar to how radio stations record phone-ins. More complex but better would be to run the recorder via a small mixing console so that you can use headphones to avoid echoes. This “simplest way” may have problems with echoes. Just get Skype running using a headset mic and sound from your speakers, and set your mobile phone / MP3 recorder recording with its internal mic. In its simplest form this can be extremely easy. Use one computer for Skype, and another computer (or cassette recorder, or iPhone, or MP3 reorder, or video recorder…) to record it. The advantage of recording the two sides separately is that the sound quality of the “other side” is not limited by the network. Synchronizing the two recordings can be tricky.

The only way to resolve this is to persuade Skype to not grab exclusive control of the recording device. This may produce an error in Audacity “Unable to open recording device”, or “Latency correction has cause the tracks to be hidden behind zero”, or simply Audacity recording just not starting. Skype may block access to the mic, preventing Audacity from recording.The other side of the conversation would need to be recorded by the other person. It may be possible to record just your side of the conversation by setting Audacity to record from your microphone. Hangouts is ranked 15th while Skype is ranked 60th. This will not solve the problem of poor sound quality from the “remote” end of the conversation, as that is limited by the Internet network. I’ve not tried it, but I have seen it recommended by others. There is a “Call Recorder for Skype” made by ($40 US. You may find that the real device and SoundFlower “fight” with each other - with each trying to grab control of the aggregate device and blocking the other.Even if you get it all working, the sound quality of the remote voice is likely to be poor,.Setting up a working Aggregate device with SoundFlower is not particularly easy, and is beyond the scope of this forum.SoundFlower is obsolete, unsupported, and not always stable.

Although “possible”, there are a number of drawbacks:
SKYPE VS HANGOUTS FOR MAC MAC
On Mac it is possible to record Skype or Google Hangouts by creating an “Aggregate device” in the Mac “Audio MIDI Setup”, and use SoundFlower as one input, and your physical audio device as another input.
