Jbardige, I am so glad it worked for you but it doesn't for untold thousands of others like myself. I am running windows 7
with no firewall other other issues.
The chat setting is set correctly to my microphone which is working perfectly. Everything in my control panel is perfect.
Everything on my computer is perfect. Everything is so perfect that I can make phone calls from my computer to people's phones using Skype and they hear me perfectly and I hear them perfectly and it is wonderful. It does cost 2 cents a minute which I guess is not the end of the world, its just that I don't like it when I can't get things (Google) to work.
I have un-istalled and re-installed gmail phone and that didn't help. I have phoned 12 different people and here's what happens: It rings perfectly with wonderful sound. I can hear myself in my earphones in high quality. The other party picks up the phone and says hello and I hear them in wonderful quality, even better than normal phone. But then they hang up after saying is anybody there. I can hear myself in my earphones say please don't hang up, but apparently THEY CAN'T because they hang up. I have confirmed I am not transmitting sound by calling my own phone. It has become one of the great mysteries of our time, one John, that I doubt you can fix, but perhaps you know someone who can? I had the same problem with Skype but they suggested a fix which fixed my problem. That's because I pay and they have a place to email for actual real technical help. Google has no technical help that I know of, otherwise I would get it fixed. I have seen dozens of other people in the same boat while searching for a cure on the internet. But all they and I get are BASIC obvious suggestions like yours that do not help the problem. I devote 3 or 4 hours a day to solving this problem, which I know effing well is a mere dll swipe or some such thing. In the meantime I would like to form a club or gmail phone users who can't be heard. Please fell free to join.