I am using the above mentioned hardware/software setup. Audacity has added sound activated recording in the 1.3 beta. I cannot set the sound activation level lower than -45db. Any lower than -45db and Audacity will show that it's being sound activated continually and will record non stop even with the phone line closed. The odd thing is that it will not work when the sound level is any higher than -45db. When I use the setup it picks my voice up beautifully but the other line not so good. The voice on the other side can sound choppy and electronic. I can upload a sample to youtube if that would help. I also tried sound recorder but it does not hear anything from my built in mic nor the sound recorder control.