I am trying to find a way that I might use my analog phone connected to the PC as a way to call overseas for cheap. PC to PC should be easy to implement using Gnomemeeting for example, but I want to be able to use an analog phone on both ends. Is there a way to do this where I will only incur the internet connection charge? I have a cable modem, and the other party overseas has unlimited dial up (56k) and more than one phone line.

After some reading, I deduced that I need to create a Voip <-> PSTN gateways on both computers. I would also need a hardware such as Quicknet's Internet Linejack. The cost is very prohibitive though but I want to know if it is possible. I think if I get just the Phonejack, then I would have to use Microtelco's Voip <-> PSTN gateways which I have to pay for the service. I would really probably just need one Voip <-> PSTN gateway since I will be doing most of the calling. My pc could be configured with Phonejack (no gateway feature) and the other pc with LInejack. I would have to use open source software.

At my end, phonejack should convert PSTN to Voip.

At the other end , the Voip <--> PSTN gateway, the gateway software should have the ability to hand the call to the PSTN device (analog phone connected to the phonejack so the other party can answer the phone) or to the POTS line port (the local telephone company service, to call a local number ).

Is this how Microtelco or a similar service does it?
Is there open source software out there that will allow this to work?
Am I completely off track here?

Thanks for any info

On second thought, I might not even need a gateway on the overseas pc, if I dont need it to plug into the local telephone service. It should just do Voip -> PSTN. So a phonejack on both ends might be all that I need?