Yes, it's possible. You've always wanted to. And now I can show you how.
Record conversations with skype! into mp3's!
Ok. We now have installed lame for mp3 encoding, and vsound, sox, and sox-dev for the program's dependancies. We have also installed build-essential, which will supply all the programs needed to compile programs. Cool, eh?
sudo apt-get install vsound sox sox-dev lame build-essential
Now we have downloaded the program and untarred it.
tar xvf skype-rec-kraken.tar
Now, we have "made" the program.
Now we are editing the program. Scroll down until you see "my $SKYPEREC" edit the value to something like this: /home/yourusernamehere/skype-rec-kraken/libskype-rec.so
(you may have to change that, depending where you installed the program!)
If you run skype using a command other than "skype" edit my $SKYPE to the command you use to start up skype.
That will run the program, and open up skype (make sure to close down skype before using this). You call your person, then you can hang up with them, and close skype. Then, the program will convert the file to mp3.
The .mp3 file will be in the folder you installed the program to. (In my case, it was "/home/majikstreet/skype-rec-kraken/XXXXXXXX.mp3".. The name will appear odd, lol. You may want to edit the name lol.
Hope this works for you!
edit: posted in wiki: https://wiki.ubuntu.com/SkypeRecordingHowto