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Same issue with XP, recently mine did that, and I wound up uninstalling, deleting the application data for TS, deleting the user, creating the user again, reinstalling, and it was working.
Unfortunately, now I have another user who cannot get the transmit light to come on either (same issue, even with push-to-talk it won't come on), but she can hear fine.
Still no resolution in sight from the way it seems...
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