I have also used Skype for past year and generally happy with it. Two issues I have are 1) that PC has to be on all the time for you to get calls on Skype and 2) if you are downloading something from internet, voice quality suffers.
I checked current prices and it's $29.95 for unlimited calls within US and Canada for year and $38 for year of local phone number, which is less than $6 a month for the service. International rates are comparable to calling cards. I bought USB phone adaptor which connects my regular phone to the PC for around $20 on Ebay. They also sell Wifi phones that work without PCs but they are all over $100.
I had my home number ported to my cell phone and use Skype as backup. I have cell calls forwarded to Skype number when cell phone is off (I always turn off cell phone at home) and save on cell phone minutes.
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