skype 2.1 - always had sound but no mic (not even in sound recorder app)
for ubuntu 10.04 (or 9.10)
the only choice was pulseserver
going to system - administration - sound - hardware
and choosing the corrrect mic device did it for me
- my mic was muted
- volume was low
- disabled the skype option to "auto adjust mic level"
HTH some others...cheers
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