Scott,Thanks for the INI file and debug reports. The reason why you're not hearing typing echo during dictation, is because it has been turned off. If you press CONTROL SHIFT +U, you'll hear your user preferences. listen closely to Items 8 and 9. Item 8 will tell you that you have no typing echo during Dictation tasks. Then turn back typing echo on in the User Preference dialog and see how it works.
Thanks,David