Constant ducking. Voice audio cuts out every 1 second or so

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Hi
I'm using the basic vanilla demos of Voice 2 with PUN. The voice audio just cuts out constantly about every one second. Using all default settings and have tried adjusting codecs but exactly same problem.
Example: If I speak a long constant tone "say ahhhhh" into the mic the audio gets chopped up like its on then off. So its like a repetitive stutter.
Using debug echo I can hear this constantly even if I'm not speaking into the mic. Speaker audio is off as I am using headphones to esnure minimal background noises.

This makes it practically impossible to have audio conversation. Tested onvarious PC's with good net connection.
Is there some setting that sets how much audio data is transferred?

I cannot figure out whats causing this on a clean installl using the simple demos?

Thanks
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