Record Audio from Mic Possible?

Is it possible to record live audio from a microphone input and send it to other clients in a game?

Can the input be sent while being recorded?

You can't do this with Gamestudios default set of functions. But you could write your own plugin in e.g. C++ from which you have access to functions for recording.

You can also use my ANet plugin, which has some ready to use voice chat functions (see link in my signature).