I also have this experience.

As a business user, making extensive use of skype for international
business, I must say that Ubuntu has now proven incapable of handling my
demands. version 6.10 was fine and the microphone worked with skype.
After updating to 7.04 this is no longer the case.

Going into the sound setting application from the panel, my microphone
is set and not muted. But there is no recording. I can hear myself
through the PC speakers, but cannot record.

The problem just appeared - probably some upgrade.

I started at the top of this page and tried each solution listed,
without success.

I stopped somewhere halfway down the page. Who wants to spend a few
weeks trying out a bunch of peoples imagined solutions. It would be nice
if someone actually researched what the problem is and fixed it.

I have to now reconsider a return to microsoft - wow. Free is not better
in this case.

-- 
Microphone not working
https://bugs.launchpad.net/bugs/80531
You received this bug notification because you are a member of Ubuntu
Bugs, which is the bug contact for Ubuntu.

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