Mic lowering sensitivity when sound is played through the headphones

[Erufailon]

I am using Ubuntu 12.04 with the latest updates and I have a problem with the mic. Although I use Ubuntu nearly 2 years now I rarely use Skype in Ubuntu. Today I tried to make a call and after a few seconds the other could not hear me. I called again, this time with Sound Settings open and I noticed that when the other person in line talks the mic is lowering its sensitivity until it goes to 0.
And it's not that the sound plays through the speakers because I wear headphones. Another "strange" thing I noticed is that I can hear my voice through the headphones and that's not normal.
Any help would be appreciated, Thank You

[cybrsaylr]

I had the same problem.
It's a setting in Skype.

Open and login to Skype.
Click on Main Menu on bottom far left > Options > Sound Devices:
You will see a line checked off saying 'Allow Skype to automatically adjust my mixer levels'

Uncheck that box, hit Apply then close it out and restart Skype and it should work fine. Now you can manually adjust mike settings and they will stay. All you may have to do is adjust your mike setting in sound settings, or PulseAudio Volume Control if you installed it, to the level you like and it should run fine.