Audio Logitech webcam c250 built in mic stopped working on skype

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Windows xp sp2, logitec webcam c250.

Installed according to directions on logitec (ran CD, connected hardware when prompted). Worked fine. Can see self in the logitec video screen, take pics, etc.
Chose not to use the headseat that came with the webcam as it had a mic built in to the camera and I only had one place to connect the head set would have pre-empted my speakers.

Downloaded and installed skype and ran through their series of video and voice tests. All was fine. Placed several calls...good. Also installed LogMeIn free version so I could support this set up after I left home for a business trip as my Mom is not all that savvy.

Two days after I got it all working, the Mic no longer works. When I run the test in Skype with the echo service, I can hear the recording, but it shows at the top the mic volume is too low and sure enough, it does not play back the messages I leave for the test.

I have found a post on here (several in fact) about checking certain skype settings and will do that when I get home tonight. Meanwhile I had my Mom move the camera from the USB port to another one thinking it was maybe a port gone bad. No such luck.

I also wondered if it could be caused by the install of logmein? It doesn't work whether I'm remoted in or not so it's not the amount of traffic causing the issue, it would almost be like some kind of interupt conflict but a) I thought that was pretty much a thing of the past and b) I wouldn't expect logmein to glom onto a hardware interupt in any case. Perhaps a conflict in port numbers used for the mic and the logme in software?

Can uninstall logmein but not remotely and won't be home for another month. Wanted to see what else I could try. Don't have any other apps on there that I could test the mic with apart from Skype. Logitec installed something to let me take pics but not anything to test mic with. Did check the skype 'mute' button, we are not muted...

Any other tips or ideas would be greatly appreciated. I suppose the mic could just have failed immediately after purchase but that seems a bit odd.
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