starting a podcast but need help with skype sound

hey all,

i am starting a podcast with a friend, just to tell you the setup i have so far.

we are using skype to talk together, i have a usb mic into my macbook and talking and recording if fine, works great but the problem comes when i want to play other sound to him (e.g. youtube videos, music etc).

i am using wiretap to record it, i can record everything fine, it is just he can't hear anything apart from my voice which makes it very hard based upon the topic we are discussing.

so basically my question is how can i play everything that comes out of my speakers and my voice through skype so he can hear it?

i have tried soundflower and it looks like it could work btu i am struggling to use it. i can't seem to select the channels, i can only select one input (i am sure it is me but i am really confused by the software).

the solution needs to be software based preferably and cheapish.

thanks

dave,

ok, a quick update.

i have nearly done it, i am using soundflower which seems like it could do the job.

i have got my output sound going through soundflower fine so the person on the other end of skype can hear it but i am having problems getting usb mic to go through it too.

how can i the usb mic to go through it too?

dave.