I have impossible task to do! Going crazy!

On fresh Ubuntu server 10.04. install, via SSH I've installed desktop and VNC server.
Then Skype.

**Problem is that Ubuntu is VPS!** And it don't have physical sound card.

I have tried everything that Google searching suggested, no luck!

For Windows system there is Virtual Audio Cable, that would make my life easier, but is there any solution for Ubuntu ?

Some said that Jack is solution, but I can't find any step by step tutorial.

**I need to record Skype output! And "play audio file" to Skype input (mic).**

Please help!