Solved: Sound Setup on Dell Vostro 1400 (Ubuntu 8.04 LTS Hardy Heron)

Intro
I have just installed 8.04 LTS Ubuntu on my Dell Vostro 1400 laptop. Everything went pretty smoothly. I had an issue with sound and internal mic.

Solution - Step 1

The trick is to do the following:
sudo alsamixer -V all

Move with cursors to the right and bring the Capture and Digital up to 100%.

Step 2
The next thing is to double click on the sound applet. In the Volume Control window, select Edit, then Preferences. Click on the checkboxes to select Capture, Digital, and Digital Input Source.


While still in Volume Control windows, switch to Options tab and select Digital Mic 1 as input source. After this, my internal mic started working with Skype and Sound Recorder. Step 2 might need to be repeated for each user.