I'm running Parallels 5 and Win 7 and had the microphone/sound issue. First I updated to the latest build (9310) and set up my microphone on the Mac side to the microphone I was intending to use. For instance, if I used a Microsoft LX headset I selected that on the Mac side: Preferences>sound>input and sound>output.
On the Win 7 side set up the microphone as DEFAULT in both OUTPUTand INPUT. This can be configured on the bottom right corner....right click the sound icon on the bottom row and set to DEFAULT. Be sure in the control panel on the sound tabs that no mute buttons are active. THEN this is the deal. Select START>Control Panel>Ease of Access>Start Speech Recognition and step through this program and at the end activate your microphone. You can then shut down Speech Recognition and your microphone should work.
It's strange, I installed Win7 on another PC but did not have to go through the Speech Recognition process for the microphone to work, but I tried for days to get microphone/sound to work in Parallels 5 but only when I initiated Speech Recognition would the microphone work. Hope this helps.
On the Win 7 side set up the microphone as DEFAULT in both OUTPUTand INPUT. This can be configured on the bottom right corner....right click the sound icon on the bottom row and set to DEFAULT. Be sure in the control panel on the sound tabs that no mute buttons are active. THEN this is the deal. Select START>Control Panel>Ease of Access>Start Speech Recognition and step through this program and at the end activate your microphone. You can then shut down Speech Recognition and your microphone should work.
It's strange, I installed Win7 on another PC but did not have to go through the Speech Recognition process for the microphone to work, but I tried for days to get microphone/sound to work in Parallels 5 but only when I initiated Speech Recognition would the microphone work. Hope this helps.