Setting Up Your Microphone
Before you start recording, make sure your microphone works. Your computer might already have a built-in microphone. (See below)
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This one is probably already configured to work, but it's not the best choice for recording podcasts because these built-in microphones tend to pick up a lot of external noise. You're better off using an external microphone that plugs into your computer's microphone jack.
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To test your microphone go to Audacity and try recording something. Can you hear it when you play it back?
If not, you may need to adjust your sound settings. (See video below)

If you are using a USB microphone, you will want to plug it into a USB port on your computer and make sure the USB microphone model number is selected for the default recording device instead.
To learn more about setting up Audacity for recording, watch the video on this web site: http://video.google.com/videoplay?docid=-778345747493431701