When setting the volume, you need to make sure you are setting it on the Recording Controls window. Changing the master mic volume doesn't affect recording, only live audio. In the volume control click on the options menu, then click properties. Check the "Recording" checkbox, then make sure "Microphone" is checked in the bottom part of the window, click OK when you are done. The volume controls will change from playback to recording mode, check the "Select" checkbox under the "Microphone" volume control. You will then be able to use that volume to adjust the gain on your mic.
Tom, February 2006