I have four friends that are currently using Packet8. None of us have had any major problems. Works great and is real cheap ($25/month total after all taxes and fees). Customer Service is a phone call away (if needed) and they always seem to answer right away.

When I was looking for a lower cost voIP service, I saw this other bad review on this site and almost did not go with packet8. But against the review, I did anyways.  
 
I have had zero problems with PACKET8. I have unlimited calling to US and CAN and the bill is never been more than 20 bucks. The payment is automatically drafted from my bank account every month, so I dont have to worry about it ever.  
 
I have reccommended this service to my friends and family and would reccommend it to you. It was 20 bucks cheaper than Time Warner's (my ISP) IPPhone service and 5$ cheaper than Vonage.  

Placed an order on the 1-21-2005 never received the product. Call several times and was told that it will get shipped and also was told that she'll call back to let me know. NO phone call. Waited until 1-28-2005 and made another attempt. No one seems to know what's going on. So, I cancelled the service. Didn't really get a good start with the company and lost faith in the service.  
Found another company with the same price range and covers more area. Order Friday night and already got a comfirmation and tracking numbers that the product was already shipped.  
So, I'd recommend to stay away from them.