Audio processing systems, such as full duplex digital telephone systems, are provided in which analog automatic level control (ALC) circuitry is employed to automatically control and stabilize the microphone output audio signal levels to a constant level for optimal digital signal processing. For example, an audio communication device (10) includes a microphone (11) to generate an audio signal, an analog automatic level control (ALC) circuit (13), coupled to an output of the microphone (11), to control a level of the audio signal output from the microphone (11) and output a level-controlled audio signal, and a DSP (digital signal processing) circuit (14) to process the level-controlled audio signal output from the ALC circuit (13). The ALC (13) allows audio signals to be captured by the microphone (11) with wide dynamic range, while stabilizing the microphone output level within a reduced dynamic range compatible with the limited dynamic range of the DSP circuitry (14) for enhanced performance.