In a particually wonderful slot on Channel 4 news last night there was a guy telling us all about Internet Telephony.
The whole piece was presented in front of a great big screen with "How it works" written accross the top and a diagram underneath. The diagram was awesome. There was a computer on the left. There was a computer on the right. There
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That said, internet to internet telephony is pretty darn simple. Now, interfacing with the POTS is where its at. I actually used Skype to call out the other weekend when my house phone was not working. It worked, but quality did feel somewhat 1950s like. I can cope with that fine though if it means being able to call worldwide (ok not quite, but coverage is pretty good) for euro-cents per minute.
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