It looks like the volume is set too low on my laptop, and there is no way to set it any higher. I can only hear something when I bang the Laptop's mic. There was no problem with Alsa, but Pulseaudio doesn't work right. I heard something about pamd, but I can't figure it out.
---------- Post added 22nd June 2011 at 01:35 AM ---------- Previous post was 21st June 2011 at 06:52 PM ----------
Figured it out. It is a bug in Pulseaudio for the Asus eeePC 1005 series. You have to:
1. Disable volume management in skype
2. Set the right mic channel volume to 0%
3. Set the left mic channel volume to 100% or whatever you like.
It took me a few months to figure this out unfortunately. There were a *lot* of red herring guides. My info was thanks to freeride on <https://bugs.launchpad.net/ubuntu/+source/linux/+bug/449855/comments/57>.