Question about PC Microphone/Headset

I just bought a Dynex One-Ear USB Headset (I know, not the greatest mic). I am not going to be using this mic for listening to audio, besides Skype. For example, I will be playing and listening to Skyrim (or any other game) through my ear that doesn't have the headset on it, and listening to my friends talk on Skype through my ear that has the headset on. My problem is, my USB mic is picking up all of the audio on my pc, when I only want it to pick up my friends on Skype.

My question: How do I configure my mic so that it ONLY picks up my friends' voices on Skype, rather than all of the audio of the pc? I want my speakers on my monitor to play everything BUT my friends on Skype, and I want my Headset to ONLY pick up my friends on Skype.

Anyone know how to do this? Thanks in advance!
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  1. Set your default audio device to your speakers. then:
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