Thought I'ld post this - as I had a nightmare with this problem.. and the solution was simple..
If you are using the XBOX version of Yoostar you MUST turn off the 360 controller... otherwise your clips will not pick up your voice.
I was on the verge of taking my copy back - when I discovered the solution. Yoostar isn't meant to be run with the 360 controller switched on (as you don't need this to use kinect) - so if you have a wired controller, or its just on charge all the time - disconnect it before playing.
so you're saying it's better on PS3?
I'm torn which version I should get, PS3 or Xbox 360
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I don't recall saying anything about ps3 in my original post - personally I would say there is little difference in how the 2 would compare, it all comes down to your social networks of friends on live or psn
From what I'm reading the PS3 version definitely sounds better. People are having audio issues (as in this thread) with Kinect, and the Kinect version forces you to use your body to navigate the menus, and it's very clumsy. The video quality seems to depend on the lighting conditions in the room, and contrast between the background and the person/clothing.