Windows 7: Skype sends my audio output to call participants

Hi.
I hav seen threads about people wanting this, but not the other way around.
When I call my friends on Skype, they hear everything I hear through my headphones. If I listen to music on YouTube, it shows up as microphone input in skype audio settings.
I have searched the forums to no avail, and I have changed possibly all of the sound settings both in Skype and the control panel.

I don't know what sound card I have, nor the name of the software. If needed, how do I find these?

Thank you!

cant help on the skype issue but, for finding your sound card drivers they will be in device manager, unless you have put in a new sound card then chances are you are running off the integrated motherboard card, if people need it put up what motherboard you have...although i doubt they will, this is more likely to be a skype or microphone setting.