Might sound crazy but open Garage Band and play a note on the default Grand Piano [below] (any instrument will do, it just opens first under Software Instruments) Playing the sound in GB will reset things sound wise. Usu. Weird, I know.
Also open Sound in Preferences and see what output is set to. Make sure its set to. Change back to Internal Speakers if it got whigged out somehow.
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In System Preferences > Sound > Input tab the Mic needs to be chosen and the Volume set high enough to move the Blue bar used here to at least Halfway preferably 3/4s
In the iChat Video menu > Microphone Enabled needs to be ticked.
In the iChat Menu > Preferences > Audio/Video the Microphone Drop down also needs to Match System Preferences Choice and the Green bar needs to be seen.
IF these are all set and the green bar moves but your Buddies still cannot hear you then go to System Preferences > Quicktime > Streaming and set the Speed to 1.5Mbps and restart iChat (so it "sees" the new speed).
Let me know and I will follow up..
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