Skype™ is powerful software which allows users to use their computers as free telephones or videophones over the Internet.
It works on different types of computer ­ Windows™ 2000 and XP (and some Windows 98 setups also work slowly) as well as Macs. Linux and PocketPc's. You will also need a soundcard, speakers and microphone or a headset or a USB telephone. You can use it on a 33k dialup but its better on broadband.

If you have a webcam and Windows XP it will also allow video conferencing.

It works in three ways.

• As a free computer to computer telephone system anywhere in the world when you and the recipient are logged onto the internet.
• If you buy credit - SkypeOut - to connect to any normal telephone in the world at very low rates.
• If you buy a number - SkypeIn - as a telephone number that connects to your computer. Ideal for those wanting another line.

Click here for more details on www.skype.com about Skype.

Now the clever bit.
If you want to call someone you search for them and then connect to them which asks them to add you to their contacts list. Once they accept your call you can talk.
Skype stores its contacts list for you centrally and also on your computer so you can use your own contacts list anywhere in the world theres a computer with Skype simply by logging in.