Same problem here. Mic works with Windows 8 Sound Recorder and Skype appears to recognize the device (Logitech Quickcam 3000), but the volume bar doesn't move and the Skype sound test failed to record any voice. Looks like a Skype problem?
Loaded an earlier version of Skype (22.214.171.124) and selected High def audio device (7). Works well but now I can't yet get rid of the newer version of Skype! (I'll sort that out eventually)
In my case I found it is a Windows 8 problem and not Skype.
Windows 8 recognize the Mic (Realtek High Definition Audio) and show is as a "Recording Device" on the "Sound" control panel.
It even shows the bar moving when you talk to the mic, but it does not records anything in "Skype" or "Sound Recoder".
I don't have the solution yet.
forgive me for asking such a foolish question:
it the SETTINGS that you speak of in skype or in my browser or in win 8?
I have looked all over in skype, did not see it.