Microphone..

Click on the speaker icon in the task bar..

Go to options, properties, select recording then click OK.

You'll now see your recording sources on the screen. Make sure microphone is selected and adjust the slider all the way up.

Run Sound Recorder, make a test recording and play back. If you hear it it works

Webcam..

Make sure the drivers for the cam are installed and then run Microsoft NETMEETING (you may have to install it off the windows CD). You should be able to get a pic from that.