Please go through the previous post, in case sound is not working correctly for you on Feisty/Gutsy. First you need to setup the sound card correctly.
I was facing problems with Internal Microphone on Ubuntu Feisty, so when Gutsy was released, I upgraded to it. Status did not change even after upgrading to Gutsy. Anyway, I tried reinstalling ALSA, but it did not help either. For Gutsy, there are not much different solutions available. So, I tried various settings in the Sound Mixer again. Finally, I got the Internal Microphone working. I used Audacity/Skype to test the microphone. Those facing the same issue with similar hardware (Sigmatel STAC9205), may try the same settings. It might help. Attached is the screenshot of the gnome-mixer settings that worked for me.
