It seems the changes you made were around fine tunning the microphone and camera
original code
myCamera.setMode(160, 120, 15, true);
myCamera.setQuality(25600, 0);
your changes
myCamera.setMode(160, 120, 5, true);
myCamera.setQuality(30, 1);
myMic.setRate(5);
According to Adobe documentation for
SetQuality, SetMode and SetRate
You have dropped sound capture rate from 8khz to 5khz and you have dropped frame rate from 15 to 5 frames a second, set maximuim bandwith to 30 bytes a second and forced maximuim compression.
I am not a flash developer so can you explain for my benefit why you made the changes.
Like Matt, I am curious to see screen shots of how you have used the plugin or your webcam