audiomyth
I am using a SM58 dynamic. The audio output is good enough only when the mic input level in the audio interface is set to almost maximum (say 90%, knob equivalent). At 80% mic input level, I still need to keep the mic at a distance of 5cms from the vocal source. Between 60-80%, it is no longer singing but shouting.
So many variables here...
FYI - I always refer to an input level as a trim control... When I say trim, it's the same as you saying "mic input level".
1: As Karyn says above, make sure you are using a proper XLR to XLR quality mic cable, not a 1/4" cable.
2: How powerful is the vocalist. One person shouting could equal another persons normal singing voice. If the voice is not very strong, 20cm is simply too far from the mic - especially a '58 or similar.
3: Why 20cm? A 58' has an exaggerated proximity effect and there comes a point of diminishing return. The distance should be determined by the tone and strength of the singers voice... not a pre determined number.
4: I love a '58, but let's not forget its primary use is a live mic. In a live situation most singers will "eat" these mics and in those cases I find a common area of trim level to be around 10 - 11 o'clock on most mixers. If the singer backed off to 20cm (other than during shouting) the trim would be much higher to accommodate.
5: Not all mixers/pre-amps are attenuated the same amount with the trim control. The reason you have the variable trim control is to adjust it as needed. As long as there is not a lot of noise being introduced, it really doesn't matter how high you have to run the trim. (EG: I use to use a Roland/Sonar VS100 and had to run those trims really high on everything. I now use a Presonus interface, and all trims are relatively low. Both sound fine & neither is better, it's just the way they were made)
Just my thoughts...
audiomyth
a) mic broken possibility - broken, like physical damage? It is 6 months old and is yet to experience gravity. And phantom power for a dynamic mic?
A mic doesn't have to be dropped to be damaged. '58 mics are very robust and it is unlikely the mic is bad, but it could be. As for Phantom power, "BIT" was saying "make sure it is turned OFF".