A few months ago, I started recording a podcast with some friends. At that time, our process was to gather everyone into one Skype call and record the session with WireTap Studio. That worked reasonably well, but there were a few problems.
The quality of the end result was dependent on everyone's Skype connection. Throw in a bad rainstorm, a large download or an iffy wi-fi connection and quality suffered. The other issue was people talking over each other. Even the most disciplined podcasters do it occasionally. Since the raw audio was a single track, editing the overtalking out of the final show was difficult, if not impossible.
A few episodes into it, we read Dan Benjamin's tips on recording a podcast with participants in multiple locations. He and John Gruber use a time-tested method called a "double-ender" when recording The Talk Show. As they talk via Skype, John and Dan record their own audio locally, and those two files are edited together as separate tracks. We've adopted a similar method using GarageBand, and it's been working wonderfully. Read on for details on our setup.