i think we just cracked the problem with the sd cards in the a118c. the speaker is attached to the sd card slot. not with tape, but with liquid glue. in parklawn's photo, the catch for the latching system has a blob of glue on it, preventing it from latching. mine was close, but wasn't causing an issue.
this explains why the sound is quieter in the C compared to the original - in the original, the speaker is attached to the back plate, and the membrane of the speaker faces out thru some vent holes - like a speaker SHOULD. there's even a nice cutout and support structure for the oval shaped speaker molded into the plastic, right next to the metal spring that provides the clicks for the lens adjuster.
my mic is also held up between the caps, and that is indeed where the rubber gromet came from when you opened yours. given its mounting position and the aded side vents (and the fact that audio was great in my test videos) i see no reason to move the mic. however, the speaker definitely needs to be moved back to the back plate where it belongs, and any remaining glue needs to be cleaned off the sd card slot. i bet this will cure all these cameras with sd card holding issues.
just be gentle when removing the speaker or putting it into the slot on the back. the wires are just barely long enough. also, the wires must be next to the metal spring for the lens clicker. to protect the wires from the spring, i peeled off a piece of the adhesive fabric that was covering one of the vents on the back (wtf?) and stuck it to the spring. then i reused the fabric that was previously attached to the back of the speaker to further anchor it to the back cover. the reason i say to be careful is that i accidentally peeled the negative pickup off the speaker, so now i have NO sound. that may not be an issue for some, but i kinda like the startup sound as it helps me know it did in fact start up.
anyway, here's some pictures.
freshly opened, not modified:
speaker removed. the latch of the sd card slot is the sort of L shaped cutout on the leftmost edge of the sd slot. you can sort of see the red and gray sandisk card in the slot thru the other openings.
now the speaker is back where it belongs. you can see how i used the fabric tape to cover the spring so it won't rub thru the speaker wires. you can also see how my clumsy fingers peeled away the contact for the black wire. i can probably solder it back but it's late... i'll deal with it later. it works fine without a speaker. and if you don't care about sound from the camera, you could simply cut off the speaker entirely. just don't leave wires dangling inside where they can short out. tape em down.