After two days of tinkering I figured out how to get my buck fifty piece of podcast equipment functioning.
I love a challenge when it comes to old technology and this purchase had several challenges in one package.
First of all the package was put together when Windows XP was top dog. Some of the software wouldn't work with my current operating system.
Second was that the included microphone (a good quality microphone) was damaged internally.
Third, the included recording software was incapable of producing MP3's which is what is needed to upload to most podcasting sites.
Long story short: It would have been easier to do this NOT using my $1.50 find but here is the result.