I have just loaded Audacity 2.0 as 1.2.6 wouldn’t let me select anything. I keep getting this one second echo delay although I have removed the effect. I am also getting a load of background hiss. How do I remove this echo. The webcam mic is also on but it is only 30 cm away from my headset plugged into the mic input. (windows 7, notebook [only one input]) It is definitely an effect causing this as the two mics would need to be separated by 300 metres to get this.
You need to simplify your sound pathways. You’re probably listening to “one computer” worth of delay – the delay of one pass through the computer. It’s worse if you like to record internet audio and leave Stereo-Mix or WAV-Out selected instead of a real device like one of the USB adapters.
You can’t as a rule, perform into the computer and listen to the computer to judge your work in real time. That monitoring will always be late, sometimes very late if you have a slower computer or with an electrically “long” processing pathway.
This is the tutorial on overdubbing and multi-track, but they have exactly the same problem you have.
Audacity will not apply filters and effects in real time. It’s real-time tools are record, play and timer.