No sound in Photobooth

I am trying to record video in Photobooth. It captured the video, but not the audio. Checked all the settings, including using the microphone in different applications, and all seems to be fine with the exception of Photobooth.

Anyone has any idea on how to correct this?

When you say you checked all the settings, does that mean you went into System Preferences>Sound? Output volume in there could be turned down. Output volume could be muted. Volume for Line In could be turned down all the way. If it works in other applications, I would say that's unusual and perhaps run Verify Disk in Disk Utility (Applications>Utilities>Disk Utility).