Hi
I just tried it on my computer, I have a Microsoft VX-5000 web cam for a microphone.
When I went to setup microphone it registered that it was getting sound.
Try opening the Sound interface, (right click on the desktop, select personalize and click on sounds at the bottom.
Click on the Recording tab, and see what is set as the Default Device.
If you see your microphone listed, select it and click on the Properties button.
Make sure it is enabled, click properties again and see it it says the device is working properly.
Then back on the recording tab, click on configure and try doing the Set Up Microphone utility.
You have gotten me interested, when I get time I will try out the speech recognition thing myself.
Mike