[regression] Mic not working after pulse updates

After doing an update on a bunch of pulseaudio packages my mic stopped working.

I played with Sound preferences, made sure "mute" was unchecked and I also tried in alsamixer increasing the mic boost and I tried out but internal and mic options.

These are all the packages that were updated before it stopped working (from Synaptic history):

indicator-applet (0.1.6-0ubuntu1) to 0.2.0~bzr319-0ubuntu4
libpulse-browse0 (1:0.9.15-4ubuntu3) to 1:0.9.16~test4-0ubuntu1
libpulse-mainloop-glib0 (1:0.9.15-4ubuntu3) to 1:0.9.16~test4-0ubuntu1
libpulse0 (1:0.9.15-4ubuntu3) to 1:0.9.16~test4-0ubuntu1
pulseaudio (1:0.9.15-4ubuntu3) to 1:0.9.16~test4-0ubuntu1
pulseaudio-esound-compat (1:0.9.15-4ubuntu3) to 1:0.9.16~test4-0ubuntu1
pulseaudio-module-bluetooth (1:0.9.15-4ubuntu3) to 1:0.9.16~test4-0ubuntu1
pulseaudio-module-gconf (1:0.9.15-4ubuntu3) to 1:0.9.16~test4-0ubuntu1
pulseaudio-module-x11 (1:0.9.15-4ubuntu3) to 1:0.9.16~test4-0ubuntu1
pulseaudio-module-zeroconf (1:0.9.15-4ubuntu3) to 1:0.9.16~test4-0ubuntu1
pulseaudio-utils (1:0.9.15-4ubuntu3) to 1:0.9.16~test4-0ubuntu1
vlc (1.0.0-1ubuntu1) to 1.0.1-1ubuntu1
vlc-nox (1.0.0-1ubuntu1) to 1.0.1-1ubuntu1
Installed the following packages:
libdvbpsi5 (0.1.6-1)
libindicate-gtk0 (0.2.0~bzr319-0ubuntu4)
libindicate2 (0.2.0~bzr319-0ubuntu4)
pulseaudio-module-udev (1:0.9.16~test4-0ubuntu1)

My hardware is this:
$ cat /proc/asound/card*/codec\#*|grep -i codec
Codec: Analog Devices AD1984A

$ arecord -l
**** List of CAPTURE Hardware Devices ****
card 0: Intel [HDA Intel], device 0: AD198x Analog [AD198x Analog]
  Subdevices: 2/2
  Subdevice #0: subdevice #0
  Subdevice #1: subdevice #1
andresmh@karmicx300:~$ lspci | grep -i audio
00:1b.0 Audio device: Intel Corporation 82801H (ICH8 Family) HD Audio Controller (rev 03)

Here is a screenshot of the pavucontrol and sound preferences and sound recorder:
http://img139.imageshack.us/img139/7273/soundissues.th.png

You can see that the mic volume level seems to indicate sound coming in, but when I play the sound is just static. Sound output works fine.

I'm running an up to date version of Karmic.