Im posting this because I have seen a fair few posts asking why their Skype conversations aren't being streamed.
XSplit seems to only take the default audio device selected for windows (that's where you click the little speaker in your task bar to set what device you want sounds to go through).
In Skype however you can't set the audio output to the default device, like you can in other applications like SC2. You have to select an actual device.
So after doing a bit of research I downloaded and installed VAC (virtual audio cable). Real cool program!! (just google it, to find the download)
Ok so what VAC essentially does is generate a virtual Line. From there we can add a bunch of sound sources to the line. This virtual Line then comes up in list of devices that you can set as an output.
Below are some steps that i did to configure Xsplit to pick up my selected audio sources.
1 - VAC settings
Just keep everything as is. By default it has 1 Line already added, which is all you need.
2 - Skype Settings
In Skype you will now notice Line 1 can be selected as the output. To get there you just go Skype>Tools>Options>Audio Settings.
3 - Set Windows default device
Control panel>Hardware and Sound>Sound. In the playback tab, make sure that Line 1 is set to default.
4 - Set Line 1 to the desired Device
In the same section as the previous step, select the Recording tab. And go down to Line 1 and select properties, then select the listen tab. You want to make sure to check the box "Listen to this device". Then in the drop down menu select whatever you want the sound to come through. In my case i have my audio coming through my headset.
RECAP
So all we have done here is added 1 application(Skype) to this virtual line. Then by making the virtual line the default playback device, we are adding general audio(media players, browsers etc) to the same virtual line. Doing this however means that the audio isn't being sent to an actual device (speaker/headset). So we then set our selected device to listen to Line 1.
SOME NOTES
*Without using VAC i noticed it was ridiculously hard to get noise levels correct. The good thing about using the VAC is that because you are listening directly to line 1, everything you hear through your speakers/headset is what the viewers of your stream can hear. This simply means if you feel one of the levels is too loud or too quiet, adjust levels within the application and its done! The only exception to this is your own Microphone volume, which you do not hear as it is not part of Line 1. So just adjust that through Xsplit.
*It is important that you DON'T add your microphone to Line 1. Xsplit asks for your microphone separately, there's no point in making it Line1 aswell, or you'll probably hear every noise twice.
*The only downside of this whole setup is that you can't seem to separate the audio onto different devices. So if you are like me and like to have Skype and SC2 coming through the headset and music playing through the speakers, you might be outta luck.
CONCLUSION
Anyways I think that's all i have to mention. This setup is by all means not the one perfect solution, im sure there are a bunch of other methods. Its just a solution that worked for me, and i hope it works for you too.
Cheers
Drubs
If you are having troubles with the quietness of your microphone in Xsplit, try my other POST!!