Thank you Kathy for recommending Audio Hijack Pro. I have recorded a conversation with the Skype Lady. She is so fine, always available when we need here. If you are still having problems with recording Skype calls, stop fooling around and get Audio Hijack Pro. The free download works just fine. You only have to pay when you want to record more than 10 minutes. So there's lot's of functionality before paying for the product. I'm going to try out more features before I purchase, but hey, it works without any fuss. Well....when I first clicked on Skype >Record it said I needed to download additional software, but that took a second and I was off and running after rebooting Skype.