I searched everywhere to fix this problem and I have figured it out myself.
If your skype is not picking up then you have the speaker (in settings) set to your headset and you need to set that to your system sounds. (This should solve your problem).
If you don't want to record skype and/or game sound then all you have to do is change skype speaker (in settings) to your headset and go to Action! and if you only want to record Skype change it to your headset and if you want to record only game sound then you need to go to Action! and change it to your system sounds.
If this helps anyone please do me a favor and subscribe to my channel. Have a great time recording!
Channel link: https://www.youtube.com/user/LegacySurge