Can't detect webcam microphone with realtek audio

Hello,

I have Windows 7, My sound is Realtek HD Audio and I have just purchased a Logitech Webcam C200, Picture is perfect, but I cannot get it to recognise to Logitech Microphone. I have uninstalled and reinstalled latest software for logitech to no avail. I have checked my sound system and the Logitech Microphone is not even listed. I have tested it on Skype and it cannot find the soundcard?? Can someone please help me out this is driving me nuts?
 
Any luck yet?
1. Carefully look through Device Manager (particularly to check under Sound devices, Image devices and Other devices). Any devices listed with yellow icons? (These would be driver problems)

2. Generate and attach a DirectX report
  • Click Start->Run, enter dxdiag
  • Notice progress in lower left window corner
  • When done, click Save Information button and save to your Desktop
  • In TechSpot, use the paper clip icon to attach the report. (If you don't see icon you may need to first click Go Advanced)
hint.. some of the things i look for a) What devices are listed under Sound Capture b) What driver file is associated with each device and c) if more then one sound capture device, which one is set to Default. Here's a dxdiag report snippet from one of my computers
Code:
---------------------
Sound Capture Devices
---------------------
            Description: SoundMAX HD Audio
  Default Sound Capture: Yes
  Default Voice Capture: Yes
            Driver Name: ADIHdAud.sys
         Driver Version: 5.10.0001.7255 (English)
      Driver Attributes: Final Retail
          Date and Size: 5/18/2009 07:26:54, 339456 bytes
              Cap Flags: 0x41
           Format Flags: 0xCCC

            Description: VF0400 Live! Cam Notebook Pro
  Default Sound Capture: No
  Default Voice Capture: No
            Driver Name: usbaudio.sys
         Driver Version: 5.01.2600.5512 (English)
      Driver Attributes: Final Retail
          Date and Size: 4/14/2008 00:15:14, 60032 bytes
              Cap Flags: 0x41
           Format Flags: 0x0
 
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