MICROPHONE - Please don't use your headset for this. Buy a quality microphone. I bought an AudioTechnica for a little over $50 and a stand for about $30 on Amazon.
RECORDING CALLS - I record my episodes via Sype and I do not use the video functionality when conducting the interview. You'll need to purchase Call Recorder for Skype (I think it is through a company called ECAMM and it is about $30)
After you record your interview, you'll need to covert it from a .mov file to a .mp3 file. I use a program called "Convert to MP3" and I think it was free.
EDITING your show - I started out thinking I would use GarageBand, since I own a Mac, but it wasn't as easy as I thought. I ended up using Audacity and it works great (It's free). So once you have downloaded Audacity, you can drag the MP3 file into Audacity, and you can get to work editing your show. The software is fairly easy to use - I viewed some tutorials on YouTube to get a handle on it.
After you edit your show, you will then have to export it out of Audacity and BACK to an MP3 file. Before you do so, you need to download something called a "Lame Encoder" (it's free). I believe it's on the same site where you download Audacity. I can't remember what it's for but it has something to do with converting the Audacity file BACK to an MP3.
But your'e not done yet. If you want the sound to be professional, you'll need to head over to a website called Auphonic and level out the sound file. They give you up to two free hours a month. Do not skip this step.
PODCAST COVER - I went to Fiverr.com and hand mine designed for $5
INTRO/OUTRO- Again, I went to Fiverr.com and had mine done for $5. It took me a few tries until I found someone I like, so in full disclosure I spent $20.
HOSTING- Most people will tell you that you need to host your files external to your site's server, which is probably good advice. However, since I use Squarespace, I uploaded them directly to Squarespace and it seems to be working fine.
SUBMIT TO iTunes- After you have a few episodes completed and edited and all that jazz, you'll need to submit for review to iTunes. It only took about 24 hours for mine to get approved. You just go to iTunes, Podcasts, Submit Podcast.