Microphone problem.
 

I read so many other threads my eyes started to hurt, and I havn't came across anyone with the same problem as me.
I'm in win 98se, Sound Blaster Live Value, using winamp 2.8 and latest shoutcast.
I have "what u hear" selected, microphone isn't muted, when i press to talk, music goes down, and back up when i release, but it doesn't play my mic. When i have "microphone" selected, it records my mic regardless of wether i have the talk button pushed or not. It's as if "what u hear" doesn't pickup microphone or something. Help me please!

Post screen shots of both your recording and playback mixer. Although it sounds like in the playback mixer your microphone is muted. Your mic plugs into your soundcard right (i.e. not a USB mic)?

Tom

mixers
 

http://otl.stabbed.net/mixers.jpg
there are my mixers, and yea, my mic plugs into soundcard

I also just realized that sound recorder and in-game communication doesn't work either with "what you hear" selected, only microphone.

So i guess noone knows what i can do to fix this?
I'm going to shed a tear :-(

I dled another DJ tool as well "SAM(great program btw if i can ever get my stuff setup)" and I have the exact same problem.
I assume it's an OS/soundcard problem? i have latest mobo, soundcard drivers, as well as latest os updates etc.
help please :-(

any ideas?