What do you mean by "real time"? Live video is very difficult to make instant, mostly because of the low sample rate to use a DSP term. (digital signal processing) Some functions absolutely require a full-frame buffer to work, and that necessarily adds at least one frame of latency. At only 30 frames per second, it doesn't take very many of those to be noticeable.
Also, you're running on top of a multitasking operating system. That by itself needs a buffer so that it can do something else for a while without losing anything, process the entire buffer at once, and let it play out while it does something else for a while again. If it takes a long enough while to come back to processing video, then you get a noticeable delay.
Generally, you either live with a noticeable delay (or be grateful that your machine is fast enough not to), or you use a dedicated hardware device that is designed specifically to do nothing but that. For video, that dedicated hardware tends to be expensive! For audio, it's getting quite reasonable now.
For the mic going away, does it still appear in Windows? Can Audacity see and record from it?
