So even after making all those changes to my laptop, I still experienced the skipping.
I tried recording on my other laptop after making the same changes on it and experienced the same.
here is a screen shot of my CPU performance while recording:


Also on their forum are several similar cases where Blue (the manufacturer) ended up advising the return and replacement of the product.It seems like the USB connectivity on this box is very _marginal_, perhaps with an electrical problem which makes it work well in some connection situations and not others. Is anyone in a similar boat?
Then in a follow up, the same user posted:I inevitably got "glitches." The "glitched" audio would range from one word with bursts of noise in it to a three-minute segment completely decimated and unusable, sounding like it was a radio picking up tremendous static noise along with the signal. This meant after recording a 30-minute podcast, I would have to go back and do retakes on a dozen different sections. That suddenly turns a 30-minute recording project into a three-hour editing session.........
I applied the firmware update available for the microphone -- it didn't help.............
If Audacity records from an analogue input without any glitching, I'd suggest contacting Blue and see if you can get a replacement - it could just be that the USB is a bit iffy on yours (If recording from an analogue source works ok, then I think we've ruled out just about everything else).Shortly after writing the review I decided the "glitching" problem that occurred on two different computers, different versions of MacOS X, using different audio recording problems, and different destination drives just _had_ to be the microphone's fault. So I requested an RMA number from BLUE, giving them my long tale of woe. They accepted the return and turned it around quite quickly. In fact, although they said they could not reproduce the problem, they must have believed that I had tried everything reasonable to prove that the problem was in the mic, and sent me a new unit.
I'm happy to report that the new unit does not seem to exhibit the glitching problem at all.