After an hour of trying to configure my microphone to work with Skype under ALSA, I finally reached success! Below is crucial information to what I did, and I hope that you find it useful.
All my devices(microphone, speakers, ringing) and mainly my microphone are set to Default Device.
I left the box labeled “Allow Skype to automatically adjust my mixer levels.” unchecked
Computer
HP Pavilion dv6000 series(specifically Pavilion 6833us Entertainment Notebook)
openSUSE 11.3 64-Bit
KDE 4.5
ALSA 1.0.23-2.12
Sound Card(Exactly in YAST):
82801H (ICH8 Family) HD Audio Controller
Configured as sound card number 0
Driver snd-hda-intel
In my case, I do allow Skype to automatically adjust the levels. However I have also encountered cases where it is best NOT to have Skype automatically adjust the level. I have no explanation as to why it works on some on not on others with the setting applied.