Thanks for your advice sgosnell and sorry for the extreme delay replying... illness in the family.
I'm not sure I really understand the advice, though.
With "pavu" I assume you mean the pulse audio volume control. I checked out the configuration tab and found 2 profiles:
1. Labeled "Builtin Audio". Set to "Digital Stereo (HDMI) Output (unplugged)"
2. Labeled "Builtin Audio". Set to "Analog Stereo Input"
The first profile has 2 other options: "Digital Surround 5.1 (HDMI) Output (unplugged)" and "Off". Both digital options are listed 3 times in the drop down menu.
The second profile has 3 other options: "Analog Stereo Duplex", "Analog Stereo Output", and "Off". Nothing is marked as default.
On the "Input Devices" tab the Label is "Builtin Analog Stereo Audio". I've switched of the "fall back" button, made sure that it's not muted and then checked the pulse audio volume meter (capture).
It would seem that there is sound being captured. Unfortunately I cannot determine if this has fixed my Skype problem, since I don't have the access details with me. I'm not at home and don't have the password and such with me. I will give it a go when I get back to my office later today and post the results.
It looks like I've interpreted your answer correctly.
