These settings are for "press to talk". It's much better to do it that way then allow the ventrilo to act as a dublex connection (like a phone). Better to use it like a walkie talkie. This keeps background sounds out of the conversation and allows you to use a desktop microphone rather than headphones. Headphones are the best way to communicate if you have a lot of ambient noise around your PC station.
Your sound device may be different, but this screenshot will give you a good shot at setting up Ventrilo correclty on the first try. Have fun!
