From this thread:
http://voiceattack.com/SMF/index.php?topic=63.0What device to you have selected? Just want to make sure that lines up with what's in the dropdown list from one of the screenshots you sent.
Have you tried another headset?
Have you made sure speech recognition is NOT disabled? Confirm that the box labeled, 'Disable Speech Recognition' is NOT checked on the Options>System/Advanced tab.
From here, I'm not sure where to guide you, as there is something up on your system that's atypical and not accounted for. Something is getting between the instantiated speech engine and your recording device. What I've been able to collect over the years is in that very large thread, and if there's nothing in there that's able to help you, it's something that I haven't encountered in a decade. You'll either want to seek out local assistance to try to troubleshoot, or send an email over to support@voiceattack.com and request a refund, as I am, unfortunately, out of answers.