Sound Properties are quite a quite a bit different in Vista. The speaker icon has gone back to looking like a speaker again.
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right clicking this gives a few different options.
clicking on recording devices brings up Sound window. Once the window opens you can access either playback or recording. Let's look at recording first. By default only mic and line are showing. If you want to see other devices you have to right click and click show disabled devices.

Once you do the window will show all the devices available. Choose the one you want to show and right click and enable it.

Once you do that and then uncheck show diabled devices the devices you want to use will show up.

Getting the mic boost turned on is different in Vista as well. First select the mic on the recording tab, then click properties or just double click mic. The properties window will open and click on the custom tab, there you can put a check in mic boost. On some sound cards the mic boost is a slider on the levels tab.
Clicking on the levels tab will allow you to adjust the mic volume.

Now we go to the playback tab on main window

if you click on speakers and then properties, or double click speakers then click level tab you can adjust volume levels from there. Also here you mute or unmute all mics.
In vista they give you the capabilty to adjust individual applications volume. Click once on speaker icon then click mixer at the bottom of the volume slider.
If you want to learn to play music into a paltalk room click here