Here's what's happening, my built-in microphone works perfectly fine when there aren't any audio devices plugged in. i.e. no speakers plugged except for the built-in speakers.
To test the microphone I used the sound recorder application in windows and every time I plugged in my speakers (in the right jack) the microphone stops working and no sound is recorded. Checking the audio settings, I have the microphone as default device(realtek high definition audio). When I turned the playback on, I can hear microphone through the speakers fine but still no sound is recorded. I tried upgrade install using the windows 7 dvd. My realtek drivers
are up-to-date. Still doesn't work.
I'm using a brand new ACER ASPIRE 4743g with upgraded ram (to 4gb).