Thanks for your replies. Ikelos, knew I should have done a search first ! These settings were set out in Skype but not with which result - if you see what I mean.
Anyway, done it & now get sound in/out to each device. I'm not sure if there's a way to mute or transfer sound depending on whether the phone's in use or not, but these settings work and I can turn speaker vol down if I'm making a call, so very happy !
dms05, I made a call whilst playing music and all was fine, so this may be another option instead of unplugging the phone ?