I was talking with a friend on Skype while the microphone on my headset suddenly stopped working. I have checked everything I know of - the mute button, the sound volume, the drivers and the microphone itself (I tried another microphone which doesn't work either). Nothing works. I can hear sound perfectly through the headphones, but the out-put line is apparently defect. Do you have any idea how I may solve this problem? I have Win 7.

Any suggestions are much appreciated

Control Panel>>Sounds and Audio Devices>>Voice>> Select "Test Hardware" while the microphone attached.

I have had the same prob with xp!
The answer was that some other program (in our case music) had hogged hte sound system and was not letting go. It required a reconfig of trhe sound inputs system in the control panel for the audi system. once that was done all worked fine.
However each time we ran the music program the same thing happened.
Our solution to that was to get an unlimited call toll from our telephone supplier and skype went the way of all things!

Does your microphone work with other programs?
Or is it just Skype?