Yes, finally. finally finally finally.
Finally my internal mic works on my laptop (acer5520).
After pouring all my brains out on what the problem or fix could be, I finally resorted to installing the latest alsa drivers (1.0.19) from source and voila! Now I do not know if its the version difference or installing from source, which caused the miracle, (and neither do i care to know) the important thing is that it works. And so does my skype. Its a bit noisy thgouh and I have to tweak my volume levels.
The point to never forget is that now I don’t have to boot back to windows, ever :D. Well, I may use xp on virtualbox, specially for preparing the resume (Oh resume! why aren’t thou in sexy latex?) after the sweet mishap of losing my job, I can easily delete my grub entry and eventually the win partition (a big :D).