Ah yes - obvious once you know where it is. Thanks
AFAIK, I have the correct and latest drivers
I have just (since first posting) rolled back to the official Lenovo Soundmax driver (6.10.1.5500, July 2007) and that does at least cause the internal mic to make the bars on the sound->recording tab move. However there is no change in the volume from either the internal or external mics.
Since you mentioned it, I thought I would update the chipset drivers to the latest W7 from the Lenovo site - just in case.
Rebooted on principle.
No change!!

if I tap the internal mic, the bars (sound->recording) get ot the second bar up
With the external mic tapping to the same degree puts the bars off the top of the scale but neither produce audible sound if I try to record in voice recorder.
I have another (sucker for punishment!!) W7 laptop and that shows 2 mics in sounds->recording one labeled default communications device and one which changes if the external mic is plugged in or not.
As this second mic is not available in hte problem laptop, I worry that W7 is not recognizing the internal or external mics properly??
How would I tell?
What can I try next?
TFAI
Or should I kick this over to the W7 forum?