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I looked into MagicJack and actually found that it worked for most people - there are a lot of happy MagicJack customers. What scared me away was the sketchiness of the software, which seems to include bloatware and potential spyware. It also won't work if your computer is turned off, IIRC.
Instead, I went for a device called Ooma, which is much more robust. Pay the $225 and get free calling for the lifetime of the device, except for about $3.50/mo in regulatory fees. If you can find the first-generation one, that has no fees at all and works just as well. I like it a lot, and whoever designed it learned a lot from Apple - very easy to set up, clear instructions, etc. You pick your own number, although I was not able to obtain a number in my town's exchange, so I have a number that looks like the next town over. For a small fee you can port a number to it too.
I know a coworker that has a magicjack, and it sounds like he loves it. He somehow has it setup so he and his parents, who are still in India, can talk on the phone and completely avoid long distance charges. So it is a pretty good deal for him. I think they have the magic jack on the computer in India and it has a local, MSP phone number.
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