Everyone's heard of Skype. Personally, I'm not comfortable with their terms of use. These are the same developers as Kazaa; I'd prefer to keep my day job, and that means I should steer clear of the more shady peer-to-peer.
What I prefer for software-based phones is Gizmo: it's F/OSS, it's standards-based (SIP), and it's just as pretty.
The next step is security paranoia, and that's answered with Zfone, which works with Gizmo and is quite secure.
SIP softphones are really coming of age!
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