It was noticable, you could hear it, like any other phone going on the line. Nice program though, at least for recording phone calls (it had a time limit though, ick).
You could not speak into it, but I believe there were programs that allowed you to use your Mac as a phone....maybe the above poster is right, I only know for certain that there were programs that would dial numbers out for you (a nice convieniance, "speed dial" with a GUI).
Yeah, I'd like to see an update or a new program with the capabilities.