I missed half of what I meant to say.1. Your setup should work fine with PalTalk.
2. On Win95+ you can use the Accessibility options in Control Panel (you may need to add/remove programs/windows setup in Control Panel to install if it is not already there) to set the control key to hold down. My Windows 98 cd is corrupt so I can't add this. My solution is to wedge a packet of cigarete papers between the Ctrl key and the shift key - there will be plenty of other weird and wonderful solutions too.
3. I could write a program that would activate/deactivate the Ctrl key but I think it would be messy to use. You will just have to be very careful (jumping the mic is something that does not go down too well).
Jon