Audio as microphone and recording outputed sound

Hi. I have a problem here, can you help me please? I use a MacBook Pro running Mac OS X 10.6.7.

I have Google Chrome and Skype. I wanted that the sound that Google Chrome plays (or if it's not possible to be application specific, then any sound the computer plays)
goes to Skype as input. And I'd like to hear both the sound that Google Chrome plays, and the sound that Skype plays. But if it's not possible to hear Google Chrome's, that's ok, but I need to hear Skype.

And then, I'd like to record the whole Skype conversation.

Is this possible? How can I do it?

Thank you.

The only way I know to do this sort of thing is:
wiretap

Does this just record or also uses output sound as input?

Thank you.

I haven't used it for a long time, but I think it allows you to route the different sources, which is what you asked???

I discovered how to do this in Windows. You download and install Audio Repeater, and using its control panel, you setup 2 lines, save and exit. You must run it as Admin.

Using Audio Repeater, you launch 3 windows of the MME Audio Repeater.

In the first one, you select Microphone as Wave in and Line 2 as Wave out.

In the second one, you select Line 1 as Wave In and Line 2 as Wave Out.

In the third one, you select Line 1 as Wave In and Speakers or Headsets as Waveout (preferably Headsets, so you don't hear the same sound echoed from the speakers).

This is really what I wanted. I hear everything that the computers plays using the headsets or the speakers (although if you use speakers it is a bit difficult to the other person to understand), I can use my normal microfone to record normally, and I can use sounds played by the computer as input too.

Then, I can record it all with multiple apps that exist to the effect, including WireTap that you mentioned here.

Thanks for all. But if you know how to do this on the Mac, please tell me.

Thanks. Now I can make Cookie Monster Prank Calls! Haha!