One of the engineering supervisors at work was being fitted with a hearing aid and was asked if he ever had to listen to a sound that made his ears ring after the sound went away. “Yes,” he said, “I did that for several weeks in Vietnam.”
The ATR2100 is a dynamic (moving coil) microphone and a USB Microphone. Dynamic microphones don’t need 48 volt phantom power, so you can leave that off.
When used with USB (and no mixer), the microphone uses the 5 volts coming up the USB cable to run all the additional tricks like the headphone connection, microphone amplifier, digital conversion, etc. As far as I can tell from the instructions, all those additional tricks stop working when used as a simple dynamic microphone and a mixer. The instructions are not perfectly clear if there is a crossover between the services, so I could easily be corrected. The instructions seem to say that without the USB, it’s just a normal dynamic microphone.
So I understand, the far end will be using an ATR2100 as a USB microphone since he doesn’t have a mixer or any other way to get his voice into the computer? Just to be a little ray of sunshine, here, the only negative comment I saw about this microphone was the USB service wasn’t very good and several users had them fail. The dynamic side of the microphone kept right on sailing, but the USB dropped dead.
I only heard the voice get louder when you cranked the volume up. I didn’t hear any sound damage or odd additional sounds. It is expected that the background noise is going to come up when you increase the volume. Everything comes up when you do that.
There is a target or goal. Live recordings should produce pretty regular peaks into -6dB on the Audacity recording sound meters (attach). The yellow zone in Audacity 2.1.0. Some peaks over are OK and a lot of peaks under are OK. You should not spend a lot of time either under or over. You should never run the sound meters all the way up to 0dB, to the right, the Audacity red zone. That will produce permanent crunchy sound damage. Too low and the voices will not be able to complete with the hiss, buzz and room noises that live down near the left side of the sound meter.

Many people are horrified that they need to watch the meters out the corner of their eyes while the show is recording. That’s what the recording engineer would normally be doing. That’s you now.
OK. Mix-Minus. You hit a sore point. I’m not a Windows elf. All the Skype machine has to do is connect to Skype, have a good USB port or two, and not make noise.
Oh, right. It’s in the same room with a live microphone (or two) so its cooling fans can’t sound like a small aircraft taking off. A very common problem with audiobook readers is an inability to get rid of the computer fan noises.
“What’s that roaring sound in the background?”
The podcast people can do whatever they want, but the audiobook people need to meet ACX/Broadcast sound standards and that means use a quiet room. Without harping on this too much, another advantage to the two laptops I used is neither MacBook makes any noise in normal operation.
So that’s pretty basic. I’m not sure where to go with this.
Anyway to finish up:
These are the Skype machine connections: Keyboard, Monitor and Mouse, Wall power, Network, UCA202.
Audio In to the UCA202 becomes Skype Send and Audio Out from the UCA202 is Skype Receive. There are no analog sound connections to the computer.
It’s up to you to sweet-talk Skype into configuring it’s sound pathways to make that work. I saw configuration settings for that when I did my test, I just screwed them up. I’m pretty sure the config panels are different now. I get urged strongly to upgrade my Skype software every time I log in, so your mileage may vary…
Oh, wait. One more. You should investigate and turn off any Windows Enhanced Services. Windows comes with sound management enabled and it drives people nuts. Maybe that’s what you’re hearing.
http://manual.audacityteam.org/o/man/faq_recording_troubleshooting.html#enhancements
Koz