to add to what RPC is saying, the RF gain on the front of your radio could be labeled "receive gain", as it only controls the sensitivity of the receive. it does not do anything on transmit.
i believe your radio has a mic gain control on it, probably labeled "DYNAMIKE".
this is what sets the sensitivity of the mic audio.
It should be understood that none of these controls are actual "gain" controls, they are actually just attenuators that let you go down from "zero".
right now im going to assume that the mic was wired properly for the radio by walcott.
since they are the ones that put the battery in, i would try a new battery and see if that helps. a low battery can cause a power mic to squeal.
start with that "echo" slider on the front all the way down (to the left).
leave the mic gain on the radio all the way up for now.
does it squeal with a new battery and set like this?
if no, you are all set, and may just need to keep that echo level low to avoid squealing.
if yes, open the mic and look at the back of the PC board.
you will see two little trimmer resistors.
one is for the echo repeat, and one is for gain.
again, as RPC said, turn the gain down, talk into the mic, and raise it up until it squeals and then back it down a bit from there.
here is a review of the mic that may help:
http://cbradiomagazine.com/Microphone Reviews/DM-452/DM-452.htm
post back with your results and we'll go from there.
LC