I have impossible task to do! Going crazy!

On fresh Ubuntu server 10.04. install, via SSH I've installed desktop and VNC server. Then Skype.

Problem is that Ubuntu is VPS! And it don't have physical sound card.

I have tried everything that Google searching suggested, no luck!

For Windows system there is Virtual Audio Cable, that would make my life easier, but is there any solution for Ubuntu ?

Some said that Jack is solution, but I can't find any step by step tutorial.

I need to record Skype output! And "play audio file" to Skype input (mic).