While recently working with the new Flash Player features, i came across a definitive issue in the new claimed AEC (Advance Echo cancellation) feature.
While Adobe says that AEC removes all echo problems that may happen in 2 way communications, i really doubt that the issue is far from resolved. In fact this introduces a new kind of issue.
The AEC algorithm actually tries to clear echoes, and mic feedback residues. However the interesting thing to note is the feedback issue will happen only if you have set Microphone.setLoopback(true); Else you will never need AEC anyways.
Now when you have Microphone.setLoopback(true); and you use AEC to save the day, you will notice that it often kills your own mic feed thinking it to be echo from the other side. Thus back to my original statement.. we never did solve the Echo problem.
In fact i found a issue reported on Adobe forums that has not been responded to. It seems that the issue happens when you use the EnhancedMicrophone api http://forums.adobe.com/thread/899119
Hence i will conclude this is a flash player AEC bug?? If any one may want to comment on this, and thinks otherwise (that AEC works for you), please let me know.