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Cheapest way to pipe sound into computer for skype lessons

Bought a webcam to take skype lessons, but the built in mic just doesn't do it. Whats the cheapest way I can directly get my instrument to my computer for a live video conference?

I have a Xenyx 502 Mixer and a Zoom G1U but im not sure those will work for what I need.
 
can you elaborate on this a little further im pretty illiterate when it comes to this kind of stuff.

Do I just run my bass into the line in, then one main out to my amp and the other main out into the line in?

Also, if I want to use the built in webcam mic for voice how will this effect the equation on skype?

Really appreciate the input.
 
I haven't tried this, but you might be able to use the built-in windows Stereo-Mix recording "device" as your "mic" in skype. It's not really a "device", just the mixer built into windows and your soundcard. It should mix your webcam's mic in w/ the line-in from the soundcard. Then you can play your bass into line-in(you may need to run it through your zoom).
 
I'm using a Logitech cordless head set. If I have a mike then the person gets some weird feedback when I start playing guitar. I also have a problem with the Bass. The low end doesn't transfer well across skype. I generally use my guitar amplifier, since it has more of a high end.