EDIT:
OS is Windows XP Home Premium SP2. The echo only seems to happen when using Adobe Flash...hmph, just another reason to hate Flash. Recording seems fine with WAV files, as well as Skype, but a Flash application causes this echo.
I was given this HP Mini a few days ago, and it's been great so far, except when I try to video chat.
The slightest sound recorded into the mic echos many times, each time louder than the last.
This happens through Adobe Flash via Google Chrome, if that means anything.
I've tried adjusting the recording volume but still no luck...any ideas?