Well I've gone and done it! I dumped my landline for Magic Jack! I just got it today and it's working great! I just plugged the Magic Jack USB device into my computer USB port and plugged my telephone cord into it. Once the device is plugged in, it installs software to get it up and running. You register your device and then you recieve your new phone number, of which you can even choose the area code. That is pretty much it! Then all you need to do is pick up your phone and make your calls!
The initial purchase is $39.95 + P&H, but, the $39.95 includes the price of the Magic Jack and the first year of service. Yes, I mean Year of service and NOT month like Vonage! The service includes free incoming and outgoing calls, free long distance & local calling, free call waiting, free voice mail, free call forwarding, 911 service, and more. Also if you have a lap top you can take it with you and make calls! The only problem I have found is that my Tivo can't use it to receive updates, but I am going to switch it from using the phone line to connecting through my ethernet /dsl connection. Right now they offer free trial for 30 days and you won't be billed the initial price plus postage till the 31st day, good deal hunh? I thought so!
So if you have a cable/ dsl internet connection and are looking for a cheap alternative to the phone company, I suggest trying Magic Jack!
P.S. I'll keep you all posted on how mine is doing!
Update On Jun 14, 2009: Still going strong after all this time and I love it! Still saving tons of cash! The great thing now is it's more easier to buy because local stores are carrying them! Walmart, Best Buy, Office Depot, etc. So you won't have to wait like I did for it to arrive by mail!