Kernel Panic when Internal Mic is used.

All,
I have a 2009 24" Imac (Model A1225) and i'm having an issue that is driving me mad.

Every time I use an application that uses the internal mic, I get a Kernel Panic and am forced to restart the computer. This happens with Facetime, Garageband, Skype and GoogleTalk. It evens happens in "System Preferences" when I try to access the internal mic settings. I've also tried Muting/Unmuting in "Audio Midi Setup". I've reinstalled the operating system from fresh, installed application one-by-one (so as to not pull in previous OS settings), have reset the P-Ram, and all other beginner tech resolutions.

Please help:
Kernel Panic Data Below:


Interval Since Last Panic Report: 181988 sec
Panics Since Last Report: 10
Anonymous UUID: 8D0B3BF9-D429-40E3-B484-0E8B50D78522

Thu Oct 20 17:04:56 2011
Machine-check capabilities (cpu 1) 0x0000000000000806:
family: 6 model: 23 stepping: 10 microcode: 2567
Intel(R) Core(TM)2 Duo CPU E8435 @ 3.06GHz
6 error-reporting banks
threshold-based error status present
Machine-check status 0x0000000000000004:
machine-check in progress
MCA error-reporting registers:
IA32_MC0_STATUS(0x401): 0xb200004000000800 valid
MCA error code: 0x0800
Model specific error code: 0x0000
Other information: 0x00000040
Threshold-based status: Undefined
Status bits:
Processor context corrupt
Error enabled
Uncorrected error
IA32_MC1_STATUS(0x405): 0x0000000000000000 invalid
IA32_MC2_STATUS(0x409): 0x0000000000000000 invalid
IA32_MC3_STATUS(0x40d): 0x0020000000000000 invalid
IA32_MC4_STATUS(0x411): 0x0000000000000011 invalid
IA32_MC5_STATUS(0x415): 0xb200221010040400 valid
MCA error code: 0x0400
Model specific error code: 0x1004
Other information: 0x00002210
Threshold-based status: Undefined
Status bits:
Processor context corrupt
Error enabled
Uncorrected error
panic(cpu 0 caller 0xffffff80002c2c95): "Machine Check at 0xffffff80002a7990, registersn" "CR0: 0x0000000080010033, CR2: 0x000000010fbfa000, CR3: 0x000000001fd31000, CR4: 0x0000000000000660\n" "RAX: 0x0000000000000002, RBX: 0x000006b454021fbb, RCX: 0x0000000000000001, RDX: 0x0000000000100000\n" "RSP: 0xffffff807fa73b10, RBP: 0xffffff807fa73b70, RSI: 0xffffff800082a7a0, RDI: 0xffffff8000803000\n" "R8: 0xffffff80008bed48, R9: 0xffffff80008bed50, R10: 0xfffffe8036937fd8, R11: 0x00080000000ad440\n" "R12: 0x0000000000000004, R13: 0x0000000000000002, R14: 0xffffff800082a780, R15: 0x0000000000000001\n" "RFL: 0x0000000000000202, RIP: 0xffffff80002a7990, CS: 0x0000000000000008, SS: 0x0000000000000010\n" "Error code: 0x0000000000000000\n"@/SourceCache/xnu/xnu-1699.24.8/osfmk/i386/trap_native.c:278
Backtrace (CPU 0), Frame : Return Address
0xffffff800081bd20 : 0xffffff8000220702
0xffffff800081bda0 : 0xffffff80002c2c95
0xffffff800081bf00 : 0xffffff80002d83ef
0xffffff807fa73b70 : 0xffffff80002ab027
0xffffff807fa73c10 : 0xffffff80002ab84a
0xffffff807fa73c50 : 0xffffff8000273b26
0xffffff807fa73d40 : 0xffffff8000276384
0xffffff807fa73e30 : 0xffffff8000213a2b
0xffffff807fa73e80 : 0xffffff80002143ba
0xffffff807fa73f10 : 0xffffff800021bb2e
0xffffff807fa73f70 : 0xffffff80002ae8a0
0xffffff807fa73fb0 : 0xffffff80002d8383

BSD process name corresponding to current thread: coreaudiod

Mac OS version:
11C74

Kernel version:
Darwin Kernel Version 11.2.0: Tue Aug 9 20:54:00 PDT 2011; root:xnu-1699.24.8~1/RELEASE_X86_64
Kernel UUID: 59275DFA-10C0-30B3-9E26-F7B5DFB1A432
System model name: iMac9,1 (Mac-F2218FA9)

System uptime in nanoseconds: 7379416769142
last loaded kext at 6119097968556: com.apple.iokit.IOAVBFamily 1.0.0d22 (addr 0xffffff7f80792000, size 36864)
last unloaded kext at 6181075434190: com.apple.iokit.IOEthernetAVBController 1.0.0d5 (addr 0xffffff7f8078d000, size 20480)
loaded kexts:
com.apple.driver.AppleHWSensor 1.9.4d0
com.apple.filesystems.autofs 3.0
com.apple.driver.AudioAUUC 1.59
com.apple.driver.AGPM 100.12.42
com.apple.driver.AppleMikeyHIDDriver 122
com.apple.driver.AppleHDA 2.1.3f7
com.apple.driver.AppleUpstreamUserClient 3.5.9
com.apple.driver.AppleMCCSControl 1.0.26
com.apple.kext.ATIFramebuffer 7.1.2
com.apple.driver.AppleMikeyDriver 2.1.3f7
com.apple.ATIRadeonX2000 7.1.2
com.apple.iokit.IOUserEthernet 1.0.0d1
com.apple.Dont_Steal_Mac_OS_X 7.0.0
com.apple.driver.AudioIPCDriver 1.2.1
com.apple.driver.ACPI_SMC_PlatformPlugin 4.7.5d4
com.apple.driver.AppleBacklight 170.1.9
com.apple.driver.AppleLPC 1.5.3
com.apple.driver.AppleIRController 312
com.apple.iokit.SCSITaskUserClient 3.0.1
com.apple.AppleFSCompression.AppleFSCompressionTypeDataless 1.0.0d1
com.apple.AppleFSCompression.AppleFSCompressionTypeZlib 1.0.0d1
com.apple.BootCache 33
com.apple.iokit.IOAHCIBlockStorage 2.0.1
com.apple.driver.AppleAHCIPort 2.2.0
com.apple.driver.AirPort.Brcm4331 512.20.18
com.apple.driver.AppleFWOHCI 4.8.9
com.apple.driver.AppleUSBHub 4.5.0
com.apple.nvenet 2.0.17
com.apple.driver.AppleUSBEHCI 4.5.0
com.apple.driver.AppleUSBOHCI 4.4.5
com.apple.driver.AppleEFINVRAM 1.5.0
com.apple.driver.AppleRTC 1.4
com.apple.driver.AppleHPET 1.6
com.apple.driver.AppleACPIButtons 1.4
com.apple.driver.AppleSMBIOS 1.7
com.apple.driver.AppleACPIEC 1.4
com.apple.driver.AppleAPIC 1.5
com.apple.driver.AppleIntelCPUPowerManagementClient 167.0.0
com.apple.nke.applicationfirewall 3.2.30
com.apple.security.quarantine 1
com.apple.driver.AppleIntelCPUPowerManagement 167.0.0
com.apple.kext.triggers 1.0
com.apple.driver.DspFuncLib 2.1.3f7
com.apple.kext.ATI4800Controller 7.1.2
com.apple.kext.ATISupport 7.1.2
com.apple.driver.AppleSMBusController 1.0.10d0
com.apple.iokit.IOFireWireIP 2.2.4
com.apple.driver.AppleHDAController 2.1.3f7
com.apple.iokit.IOHDAFamily 2.1.3f7
com.apple.driver.AppleSMBusPCI 1.0.10d0
com.apple.iokit.IOSurface 80.0
com.apple.iokit.IOBluetoothSerialManager 4.0.1f4
com.apple.iokit.IOSerialFamily 10.0.5
com.apple.iokit.IOAudioFamily 1.8.3fc11
com.apple.kext.OSvKernDSPLib 1.3
com.apple.driver.ApplePolicyControl 3.0.16
com.apple.driver.AppleSMC 3.1.1d8
com.apple.driver.IOPlatformPluginFamily 4.7.5d4
com.apple.driver.AppleGraphicsControl 3.0.16
com.apple.driver.AppleBacklightExpert 1.0.3
com.apple.iokit.IONDRVSupport 2.3.2
com.apple.iokit.IOGraphicsFamily 2.3.2
com.apple.driver.BroadcomUSBBluetoothHCIController 4.0.1f4
com.apple.driver.AppleUSBBluetoothHCIController 4.0.1f4
com.apple.iokit.IOBluetoothFamily 4.0.1f4
com.apple.driver.AppleUSBHIDKeyboard 152.3
com.apple.driver.AppleHIDKeyboard 152.3
com.apple.iokit.IOUSBHIDDriver 4.4.5
com.apple.driver.AppleUSBMergeNub 4.5.3
com.apple.driver.AppleUSBComposite 3.9.0
com.apple.iokit.IOSCSIMultimediaCommandsDevice 3.0.1
com.apple.iokit.IOBDStorageFamily 1.6
com.apple.iokit.IODVDStorageFamily 1.7
com.apple.iokit.IOCDStorageFamily 1.7
com.apple.driver.XsanFilter 403
com.apple.iokit.IOAHCISerialATAPI 2.0.1
com.apple.iokit.IOSCSIArchitectureModelFamily 3.0.1
com.apple.iokit.IOAHCIFamily 2.0.7
com.apple.iokit.IO80211Family 411.1
com.apple.iokit.IOFireWireFamily 4.4.5
com.apple.iokit.IOUSBUserClient 4.5.3
com.apple.iokit.IONetworkingFamily 2.0
com.apple.iokit.IOUSBFamily 4.5.3
com.apple.driver.NVSMU 2.2.9
com.apple.driver.AppleEFIRuntime 1.5.0
com.apple.iokit.IOHIDFamily 1.7.1
com.apple.iokit.IOSMBusFamily 1.1
com.apple.security.sandbox 165.3
com.apple.kext.AppleMatch 1.0.0d1
com.apple.security.TMSafetyNet 7
com.apple.driver.DiskImages 331
com.apple.iokit.IOStorageFamily 1.7
com.apple.driver.AppleKeyStore 28.18
com.apple.driver.AppleACPIPlatform 1.4
com.apple.iokit.IOPCIFamily 2.6.7
com.apple.iokit.IOACPIFamily 1.4
Model: iMac9,1, BootROM IM91.008D.B08, 2 processors, Intel Core 2 Duo, 3.06 GHz, 4 GB, SMC 1.45f0
Graphics: ATI Radeon HD 4850, ATI Radeon HD 4850, PCIe, 512 MB
Memory Module: BANK 0/DIMM0, 2 GB, DDR3, 1067 MHz, 0x802C, 0x31364A53463235363634485A2D3147314431
Memory Module: BANK 1/DIMM0, 2 GB, DDR3, 1067 MHz, 0x802C, 0x31364A53463235363634485A2D3147314431
AirPort: spairport_wireless_card_type_airport_extreme (0x14E4, 0x8E), Broadcom BCM43xx 1.0 (5.100.98.75.18)
Bluetooth: Version 4.0.1f4, 2 service, 18 devices, 1 incoming serial ports
Network Service: AirPort, AirPort, en1
Serial ATA Device: ST31000342ASQ, 1 TB
Serial ATA Device: HL-DT-ST DVDRW GA11N
USB Device: Built-in iSight, apple_vendor_id, 0x8502, 0x24400000 / 2
USB Device: Keyboard Hub, apple_vendor_id, 0x1006, 0x26200000 / 2
USB Device: Microsoft Wireless Optical Mouse® 1.00, 0x045e (Microsoft Corporation), 0x00e1, 0x26230000 / 4
USB Device: Apple Keyboard, apple_vendor_id, 0x0220, 0x26220000 / 3
USB Device: IR Receiver, apple_vendor_id, 0x8242, 0x04500000 / 2
USB Device: BRCM2046 Hub, 0x0a5c (Broadcom Corp.), 0x4500, 0x06100000 / 2
USB Device: Bluetooth USB Host Controller, apple_vendor_id, 0x8215, 0x06110000 / 5