Everything works, but not without flaws. PC/Laptop will not "wake up" (from sleep mode) by mouse when connected to this KVM. Also the audio (when using headphones over this KVM) creates some static noise (maybe up to 10 decibels). I have good Bose noise canceling headphones. Unfortunately, with the noise reduction switched on, the disturbance/interference is much stronger. Static/noise does not occur when KVM is not used but plugged directly into the audio jack of the PC, so static is definitely a consequence of using KVM. Defects are more likely to be due to technical flaws like poor EMI shielding than a product defect. So I will keep the product and use it as a KVM for video, mouse and keyboard. However, I would recommend finding another solution to share audio and microphone between two PCs. perhaps a more standard setup, like using the "optical out" on the back of your HDTV/monitor (if you're lucky enough to have a model that has it), connecting the optical out to your A/ V receiver and then connect your headphones or speakers to the A/V receiver.
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