Remove an effect that almost sounds like being underwater?

I need help removing an underwater like effect that was generated by a laptop I used for recording. This is not the laptop I usually use but I had to use it this time.

Anyway I have attached a clip of the audio in mp3 format, the first 10 seconds is some of the messed up audio and the next 30 seconds is good audio. for some reason the sound device was going back and forth.

Please help me fix this if it can be fixed in Audacity.

I am using Audacity 1.3.12-beta on Windows XP.(although the recording was done on Vista but that doesn’t matter now)

There’s a lot of things wrong there.
The recording level is far too low - ideally the peaks should be coming up to about half of the track height.
There is a lot of background noise - some of this is due to the quality of the sound card (I’d guess it is an on-board sound card) and some is electrical interference (I’d guess that the recording computer was a laptop PC running from it’s “mains adaptor” power supply and the interference is caused by the power supply.
The “silent” parts are noticeably lower than the centre line of the track - this is called “DC off-set”, and while this can easily be resolved in Audacity it indicates a problem with the sound card.
The major problem that you refer to is due to a problem in the sound system of the recording device - I don’t think that this problem can be resolved.

Yes I know the recording level was too low but I couldn’t really raise it anymore because the speaker was not holding the microphone close enough to his mouth.

I believe alot of the background noise was picked up because I had to raise the volume going into the PC on the mixer, I probably should have also turned off other Mics on stage. The on-board soundcard was being used and I knew that the output on it had been damaged but I didn’t know the input was bad. The mains-adaptor was also being used.

That’s too bad, thanks for your input. I guess I’ll just have to live with it.

If anyone thinks this can be fixed and can prove it on the clip I provided and explain how they did it then I would be grateful but I agree with Steve that it probably can’t be fixed.