I also use Packet8, and have saved a ton of money with it. Felt great to have my expensive land line service disconnected.
As far as internet phone service goes, I came across a terrific deal today that is just toooo good to pass up for anyone considering internet phone service. Sunrocket (another excellent internet phone service provider) is having a very "limited time" special on their annual unlimited service - the special is $99 for your first 12 months of service!
Sunrocket is the most inexpensive internet phone service you can get (among providers considered "high quality"), and the annual service normally runs $199 per year (still super cheap). Now, if you act fast you can get it for $100 discount. This works out to $8.25 per month for unlimited local and long distance within the US, Canada, and Puerto Rico.
You have to have broadband internet to use internet phone service, but for those who have it - this is an incredible deal!
If interested, you can read my review on Sunrocket here:
http://www.long-distance-savings.com/rocketreview.html