I think my issue is that I have a USB headset. It DOES have headphone and mic jacks, but the reason I bought a USB headset was because the jacks don't work on my pc, for whatever reason. It's a custom made pc and I asked the guy who made it, but we couldn't figure out what was wrong. He had a mic that worked, but mine simply wouldn't (although it did work on my laptop, so the headset was fine)....
So I NEED the USB headset. I suppose my skype buddies worked because he has a headset with the jacks, not a USB headset?
Stereo mix works just fine for me, IF I unplug my headset and just play through my speakers. But that doesn't work for me, because I have a roommate, and I don't like listening through my speakers if I'm right in front of my computer. At least, it LOOKS like it works fine, although the volume levels aren't normal, they only go up about 2 bars, in accordance with my speaker volume?