LoomieLive uses audio to drive lipsync of your avatar. Because of this, ideally you wear a headset. But if you don't have a headset, here's how to best to use the software.
Talk / Listen
LoomieLive Talk/Listen button allows you to operate without a headset. If you are having an issue with your avatar lip syncing while others are speaking, this is the non-headset solution.
While you are listening to others, toggle the "Listen" button. The microphone will turn red, indicating that your avatar cannot hear the other speakers. An indicator will pop-up in LoomieLive window, reconfirming the status. Viewers will see this indicator.
When you are ready to talk, toggle the "Talk" button. The microphone will turn green, indicating that your avatar is ready for lip syncing.