The calibration utility included with "Dragon Naturally Speaking" presents 
the following peculiarity: when testing the microphone's level, the utility 
automatically raises the volume control in the Mixer to the maximum level, 
boosting the level out of its usable range.  This causes the utility to report
that the microphone and sound card failed the test, even though everything is
working properly. 

To remedy this situation: 

1) Open the sound card's Mixer and verify that the microphone input is 
   active.  Test this by recording your voice to your computer (you can use 
   AudioView or Windows Sound Recorder).  Keep the Mixer open on the desktop.

2) Open Dragon Naturally Speaking, and run its calibration utility.  Keep both
   this and the Mixer visible on the desktop. 

3) When the Dragon calibration utility turns the microphone volume all the way
   up to 100%, switch to the Mixer and with the mouse click, drag and hold
   the microphone level down to about 75%, and proceed with the test (you
   will need to hold the mic level down during the entire test). 

4) If the test fails, try again.  This time, keep the microphone volume at 
   50%, or less if necessary. 

5) When you've found a good microphone setting, close the Mixer.  This will
   save the setting.

NOTE: You may also visit Dragon's Web site at: www.dragonsys.com