I confirm your problem using stock Ubuntu 12.04.

I cannot use Sound Recorder and Skype since upgrading kernel.
I got same problem on webcam using Cheese: webcam led turns on but I've got a black image.

tarini@tarini-ultrabook:~$ lspci | grep Audio
00:1b.0 Audio device: Intel Corporation 7 Series/C210 Series Chipset Family High Definition Audio Controller (rev 04)

tarini@tarini-ultrabook:~$ lspci | grep Audio 00:1b.0 Audio device: Intel Corporation 7 Series/C210 Series Chipset Family High Definition Audio Controller (rev 04)

I think you have an older sputnik model (1st or 2nd generation) so your problem is completely unrelated to mine. Also the kernel in stock Ubuntu 12.04 is very old (I think it's 3.6 or something like that). I'm using 3.14

I got same problem on webcam using Cheese: webcam led turns on but I've got a black image.

ALSA has nothing to do with the video output, your issue is unrelated to mine or any sound card issue in general.

To anyone interested. I have resolved my issue with the internal microphone.

Here's what I did.

1. Run ``alsamixer``

2. Goto capture channels (press F4)

3. Set the "Digital" Channel to a non zero value (e.g. 40). This is slightly non-intuitive but it seems necessary for anything from the internal microphone to be captured

4. Set Internal microphone as a capture device (select the channel and press the spacebar).

5. Set the "Capture" Channel to a non zero value (e.g. 40)

6. Enjoy a working microphone!