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0e1f616
(Get the code!)
I can confirm the issue with MacOSX 10.6.8.
All settings on default, sound API CoreAudio. The microphone has alwas some kind off loopback / overdiven volume. If i raise the latency i can hear how the loopback build up until it is one nasty feedback loop.
I need to hit "Query device" and lower the Mic volume to near zero for being able to use microphone.