To mute system audio, click the speaker icon under the bottom-right of the preview window so it's grayed out.
Note that if you're on OBS Studio/Multiplatform and not classic, you don't need to install the plugin, it's a 'media source' or something, and you can just mute the system device in the audio list by clicking the speaker there.
Add the video to the playlist. You might be able to add a second video source and put in your music file, if it's compatible. But there is no ability to play music back directly in OBS, and if you use a separate music player you'll need to leave the system channel (and therefore Skype) audible.
I'm a little lost. I have the song downloaded onto my hard drive as a windows music file. How do I select that to be played only in obs and it not play anything else.
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