I use both Skype and Magic Jack, and they both work fine for me. Neither is perfect, just get what is convenient to you.
I use Skype free, their international package doesn't cover some countries I call, so I meet my family on Skype and we talk for free. Using video is a big bonus with this system.
For calls in the US to regular phone numbers I use Magic Jack, it doesn't sound like a cell phone, it sounds like a land line and I never drop calls or get interference. I hook it up to my regular phone, including a cordless, and I'm able to move around the house and talk. It replaced my home phone and I still have a cell phone that has crappy service for a lot more money.
I've been using it for about 6 months, there are no funny charges on my bill, in fact, one time I bought $5 worth of international long distance and I got an email saying that my card was being charged.
When I travel out of the country I can call any number here in the US without any extra charges, this alone is worth a lot of money to me, and the reason I bought it.
When I first tried it, it didn't work with my Macbook, but a few months ago they released a patch and now it works fine.
Since I've been satisfied with their service I've been considering buying their 5 year deal (I think it's $60) that's what I used to pay for regular phone for one month, as opposed to 5 years.
Sorry if I sound like an informercial, I'm just trying to tell you all how it's worked for me.
But wait! there's more...
yes, some bad news, people who call your number have to dial the area code, even if they're in the same area code. It's an internet phone and it needs to know where to direct the call. It hasn't been a big deal for me. If I think someone might have a problem with dialing the area code I give them my cell phone number and it solves the problem. I don't know if Skype has this same "problem"?
Both services are great, one reason I like MagicJack is because it's helped keep the phone prices competitive. Phone services have gone down in cost and even Skype lowered their price a little.
Finally! one time when the consumer has more choices and fair prices.
This product gets a lot of negative press, I can see how the competition would get nervous, I've seen some sites where they discuss the inventor's personal life or his past projects. I thought that was uncalled for and it gave me a little push to go ahead and give them a chance.
I have no regrets, I have no problem recommending this product, as well as Skype. I wish they had an affiliate program.