problem with skype and lifecam hd-5000 audio

Having trouble getting the microphone to work on my Lifecam HD-5000 with skype. Using freshly installed Ubuntu 12.10 and skype 4.1 just installed.

If I open sound properties and select the HD-5000 as the input source, set the audio level, it clearly is getting audio in since the bar graph moves in response to audio.

In Skype there are several dozen selections for the microphone source but I have tried all of them and I still get no audio in Skype. I tried all the HD-5000 relevant ones as well as the defaults and the pulse selection which I thought would work. Despite this none of the selections get in input audio in the test call. The speakers work fine as does the video from the HD-5000. Any other tips?