I've tried Skype several times as a phone replacement but it never works well enough. Maybe it's just this way in the UK. Every time I've tried using it to call abroad (i.e. Germany where I have relatives), they can't hear me due to it crackling or there's a really long delay. Even when I've used it in the UK to call landlines, there's always a noticeable delay and calls feel really disconnected and uncomfortable. I've tried it with the microphone in my webcam and speakers, I've tried it with a headset and I even tried it with a USB adapter for connecting a regular phone. I've tried purchasing higher tier Skype services such as a Skype-In number but still I've always been disappointed with the service. It isn't due to my ADSL line either, I connect at 12 MBps down and 1.3 MBps up and don't have any problems with any other service.