A few posts above chapychimp kinda explained it
!
Ok. I did play around a bit and try different things. Here is what I managed to do and get to.
1. /system/etc/soundimage - srsfx_trumedia_voice.cfg shows configuration for a lot of sound realted issues - like routing-output device, BT headset, speaker, wired headset, AUX/line out with each having blocks like hard limiter, TruEQ, CSHP and WOWHD. These settings include gain - found some set at 0.400 and others at 1.000. So I did play around a bit with the gain settings and did manage (I think) to improve the sound reception on google talk - not sure though if it actually happened or if it was just because i thought i had changed something. The souting-output device section has a lot of disallowed devices including Bluetooth A2DP - did try enabling the wired headset and seeing if anything happens but in vain - I think some of the other settings specific for the BT headset must also be altered.
2. /system/etc - some files like A1026_CFG.csv, AdieHWCodec.csv, AdieHWCodec_WA.csv, AIC3254_REG.csv, AIC3254_REG_DualMic.csv
Each of these files has some binaries set for stuff like phonecall_reciever, phonecall_headset, phonecall_speaker, phonecall_by.vr_no_ns_reciever. I could not figure any of this out so have not touched any of this.
3. /system/etc - CodecDSPID.txt and CodecDSPID_PVT.txt - both seem to have definitions for various sound+mic functions - for phone, playback, recording, voip. All except phone have values set with definitions for certain files within /system/etc/soundimage. Phone is left blank. As all of them seem to be specific for each function, I do not know what to define for the phone functions.
4. /system/etc - IOTable.txt and IOTable_XB.txt - both as I understand have binaries set for input-output with each method of input having binaries specific for it. Again as I do not understand, have not touched these.
5. /etc/permissions - tablet_core_hardware.xml - the permissions include instructions which say that GSM phones must also include android.hardware.telephony.gsm.xml which is missing from the folder. May be if we could get that file, try incorporating it and testing what happens.
These are what I found. I am not so well versed with binaries and stuff so I do not know what to do further. If anyone else who has the know how is interested can can try taking this further, will be much appreciated.
Edit: In case this is all basic stuff which has already been checked by more experienced users than me, I am sorry about repeating known stuff.