Skype Call Recorder is the best FREE software recently released which allows you to record skype conversations very easily. After install it sits in the system tray and if the recording is set on it will record all the skype calls you make on that computer.
You can configure the destination of the recorded MP3 file and also define the bitrate which controls the sound quality.
Note: Skype will ask you for the authorization to use this application
The quality of the recorded conversations is in stereo mode which quite good and clear to listen. You can set skype call recorder to automatically start with windows startup.
Although the program is quite basic in terms of features, as there is no progress bar to indicate the process of call recording and the play button on the application does not work.
Requirement: It requires .net framework to be installed on your computer to work. It is supported on Windows 2000,XP and Vista