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NOTE: Sorry I lost the screen shots in a server crash
This is how to create a keyboard shortcut to mute your microphone. Pressing the keyboard shortcut once will mute the microphone. Pressing it again unmutes the microphone.
First you will need to download NirCmd.
Right Click, New, Shortcut.
Point the shortcut to your location: C:\nircmd.exe mutesysvolume 2 microphone
Name the shortcut and click Finish.
Right click, Properties and create a shortcut key.
Change the icon. I used %SystemRoot%\System32\SoundRecorder.exe
Using a script we can mute the microphone and do something else. For example, play a confirmation sound.
Create a script file, Mute Microphone.ncl
mutesysvolume 2 “Internal Microphone”
stdbeep
Now lets point our shortcut to NirCmd.exe with the script.

The finished shortcut

NOTES: The microphone name is the name found under recording devices. I’m using Windows 7 in this example.





