I found out this is called Acoustic Echo Cancellation and can be found in almost every speakerphone application, and yet i cannot find a PC program that can do it. Anyone have any ideas or know of any programs that have this? I've seen that MSN Messenger has AEC built in but it only works for MSN Messenger. Maybe there is a way to use this feature from Messenger on other programs, would anyone know how to do this?
I decided to just buy a Asus Xonar U1 usb sound card (about $80) with AEC built in and hopefully better sound quality than my old laptop sound card. This solves the problem