Audio problem using iSight on FaceTime

Just got in a vintage Apple iSight Webcam. Used my iTunes account for the account. Set my audio volume in System Preferences -> Input -> iSight. Input level appears fine. Mute is NOT checked. Output volume set to max. Initiated call to a iPhone 4 via address book. I initiated connection via my MacPro and I could see and hear him just fine. He could see me but not hear me. I had him call me and got computer ring and answered. Same result, I could see and hear him, he could only see me.

I tried the camera out using iMovie and the recording level was fine, so the camera and microphone work OK.