Welcome T...
Thanks for a very nice introductory post. I can slice that up into several testimonials.
As for the volume issue. Did you try to use windows voice training with this profile? If you do this it is important
not to do the part where you set up the microphone and then read aloud: "Peter dictates to his computer. He prefers it to typing and particularly prefers it to pen and paper". If you do this then Windows will have an opinion about what input level your microphone should be set to when using SR. This can affect any type of microphone including the Kinect. To be clear, you can and probably still should do training, but you should skip the step where you set up your microphone.
If you have already done this step you have a few options.
1 - Create a new speech profile and switch to it, then delete the old one. This is probably your best option.
2 - See if you can find the registry entry where it stores this value. I don't know what registry key it would be in or even if it exists, but someone out there might have already figured it out so you might be able to find it with a web search.
3 - VC has actions for setting the input volume. If you can figure out when Windows is resetting the mic you can maybe set up some command in VC to reset the volume to the one you want.
Maybe you have not done this microphone set up. In that case I'm not sure. I don't have this issue with my Kinect, but i learned a long time ago not to do the microphone setup in Windows.
There could also be some other program running like Skype that is trying to "help" you by "fixing" your mic input levels.
I have had some success using the streaming options for the Kinect in VC with both the regular and SP versions of Vox. I notice the biggest difference when I use SP with the Kinect speech engine. But I don't like SP because it has no dictation and is not so great with numbers.
As far as settings go, I like to enable AEC, and a manual beam angle of 0, when I know the Kinect is always more or less pointed at where I sit. AEC only works if you use directX audio output, so it's good if you are listening to music. It doesn't work with surround sound, digital passthrough, WASAPI etc. and may even prevent the mic from working at all.
I still prefer Amulet and VoxWav. Or a good wireless headset.