So, I had trouble following the settings for recording two sides of a telephony call (skype), so once I found settings that worked, I figured I'd post them here for anyone else who might need them. 

 (Using a Logitec 250 USB headset)

System prefs : Sound : output and input set to Logitec USB

Audio Hijack settings : Source type: Skype (it'll restart skype if you have it open)

Skype prefs : output and input set to Logitec USB 

None of this covers the audio specs - I'll be doing editing in Audacity to get those set correctly. 

I had issues when trying to do this with a logitec headset that has the two 1/8th inch plugs that were going into my laptop - don't know why, but Lee said the USB would work better and she was right!