Steve,

I've been using skype for some time now. I have some friends in Russia and have used it extensively to call them because the rates are so low.

I have a broadband connection and find that calling from my PC to my friends phones is a breeze and quality is easily as good as a normal phone. Using PC to PC however has not been as good probably because I have broadband and my friends have dial-up which in Russia can be variable.

It is important to have a good soundcard in your PC and it helps to use a good quality headset. One of my friends just uses a simple desk mike and the PC speakers. With this setup PC to PC comms are not much better than MSN audio. On PC to phone it works extremely well and the rates are very good. I can recommend it for that application.