After watching the screencast (several times) and downloading Hijacker Pro onto my Mac, I carefully set out to select all of the correct preferences. i am recording them here as a reference for my next try at this.

System  Preferences (Output USB headset/ Input Internal microphone Built in)

Skype Preferences (Output - Built-in Internal speakers  /  Input - USB Headset)

Hijacker Pro Preferences ( Output - Built-in Speakers / Input - USB Headset)

A quick tweet to Lisa Durff and I was ready to chat via Skype.

I clicked the Highjack button on HighJack Pro which resulted in horrid feedback. Quickly, clicking the Mute button which stopped the feedback, but would it also mute the incoming sound??  A quick click on Record and I hoped for the best.

Magically, I stopped the recording and hijack and lo and behold there was a file of my recording.  WhooHoo!  I will still need to figure out how to even the sound recording of both sides of the conversation. is there a way to figure that out as you are recording, because the volume sounded fine while I was chatting?

I also discovered that I need to select the Format (for Internet distribution LOW) on the Recording tab in Hijacker. The HIGH setting format records in a bit rate that is too high.

So, here is it, my very casual conversation- recorded, yet needing some more work.