Windows 7: Microphone Internal Not working!

First off , thanks for having this forum to help us with our issues!

I just purchased Aspire 5733z, 8 MB Ram, Windows7, 64 Bit Notebook!
I have been setting it up a little each day.
The Built-in MICROPHONE does not work when making phone calls using Yahoo or even magic jack. After the first day of purchase it starting making a high pitch noise and so I turned decip down. I played with it for the next few days and well still no one can hear me on the other end.
Where is the Microphone located and is there something covering it when bought new that I need to remove?
Thanks guys!
P.S. I use a USB hub since I have several items that need to be connected to the PC.

To check your internal microphone is working use the windows sound recorder..... start, all programs,accessories,entertainment,sound recorder. Make a recording and check it records and plays back. If this works your internal mic is OK and I would start looking at a Yahoo driver or settings problem instead. From memory, the microphone is a small hole on the lid adjacent to the webcam.

I opened up "Sound Recorder" I recorded myself and it works, Barely hear my voice!
How do i turn the deci part back up again. I use external usb speakers to listen to videos, phone calls etc.
You mentioned yahoo drivers, how about magic jack drivers also. How do I check those?

OK, so you know the internal mic works ok - to adjust the sound levels (in Windows 7) go to start, control panel, hardware and sounds and adjust the volume from there. So now, if you are having a problem with your phone call software you now know it is not the mic that is the problem and you will need to look at why this is not working - I only mentioned the drivers as a possible solution but it coud just be the sound levels in these programs you need to adjust.

Hope this is of help.

I just wrote a whole thing about microphone and lost it, didn't post.
Anyway the microphone is my main concern, not it working with yahoo or making calls.
When I first bought my PC 2 weeks ago from Walmart the original setting in the microphone boost was +20.0db. The next morning when I turned on the PC this very loud tone started coming from the PC. So I turned it down to the next level which is +10.0db, this may be why I can barely hear my recorded voice because the volume is at 100%.
I noticed that when I squeeze to the right of the camera the high pitch sound goes away but then comes back, so weird and a pain. My PC crashed with a blue screen and it would not load windows for an hour until I figured this out. And in safe mode you can not adjust any sound devices.
What do you recommend I do next?

Seriousley...! if it gave you the blue screen of death after 2 weeks of owning it I would take it back to where you bought it! If you bought it fom a computer store then when your there you may want to ask them about the microphone issue.

After hours of researching this issue and even chatting with tech support for Acer with NO help what so ever....
I just spent a little more time playing around as I have been doing this since I purchased this PC over 2 weeks ago.
In sounds under the PC speakers double click and click on levels. Don't know why but there is a Microphone slider bar to increase which I slid over and then I disabled all sound effects for the PC speakers.
So I guess the PC speakers have something to do with the Microphone which adjusting them both to your preferred quality and clarity seemed to work.

I really did not want to return my PC to someone who would just replace it or say it works when it doesn't, Been there and done that. Especially since i have my PC set up pretty damn good!