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Vonage is overpriced but if money doesn't matter too much for you they are the biggest name in the market and for the most part can be relied on to have better service levels than the competition. I've been on too many "startups" that eventually go to hell when they get popular and all kinds of hiccups happen.
I used Skype in/out for 1yr. Cell phone like call quality and couldn't get touch tone to work for the life of me. I of course used a USB adapter to plug in a normal cordless phone.
If you want local numbers in a LOT of locations skype is the best option I know of.
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