My guess is it's the mic, but I think others are using cheap mics without much of a problem. Before you give up, try adjusting your sound levels - your record volume may be too high or too low.

Every computer is different. Probably the best way to find out how to adjust levels is to go to Settings, Control Panel, click on "Help" then select Help Topics. Type "sound" into the search box. Also, please not that HearMe does something different with levels. The only way to check HearMe is to go there and try it when someone is available to listen and give you feedback. There's and "audio configuration" thing at HearMe, but in my opinion, the thing doesn't work very well - it's telling me I'm red-lining all the time, and my mic is set on the lowest setting...