Audio Connections In Gnome

53
Yesterday, Pete Graner, leader of the Ubuntu Kernel Team asked me a question:

Is it possible to route audio from one application into another as an input. As an example, if on a video or audio chat in Empathy, is it possible to route the output of Rhythmbox or Totem into the input for Empathy so the person you are talking to can hear the music?

I had no idea, but I said I would blog it on Planet GNOME to see if this exists. And so, here is my blog. Thoughts?