Weird Sound Problem

[Noda]

I have a problem when using voice communication software such as Teamspeak and Ventrillo

First off, here are my specs

Epox Motherboard
AMD 64 3000+
Radeon x700 PCI-E
1024 mb RAM

SOUND CARD: AC97 ONBOARD AUDIO

the problem is, whenever i try to output sound (speak into microphone), all the sounds going on in all applications are also outputed.
for example, when i am playing battlefield 2 with a headset, when i talk, other people here all my game noises.
at first, i thought it was because my microphone was close to my speaker, but i tried it with a headset, and the same problem is occuring.

now i am trying to broadcast live jazz music through vent with some buddies, and i am wondering whether there are options to fix this, or whether i should buy a new sound card (can anyone recommend me one for <$60)

Thanks for the help in advance! - Noda

 

[catalyst1]

Make sure the microphone is muted in the playback sound options (not the recording sound options).