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I used to do this. I'm pretty sure you need something like this to really use TAPI.

See, that's the stuff I'm finding all over the web. Everywhere it's all talking about using your PC as an answering machine or a fax machine, but not a speakerphone. I want to use my PC as a speakerphone.

I tried Phone Dialer Pro, and it seems to have the feature I want, but gives me an error message saying that my modem doesn't support the speakerphone feature. But checking all the stuff that I'm supposed to check according to their FAQ, it should Just Work. I have an email into them, maybe they know what's up. No reply yet...
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Tony Fabris