diff --git a/src/app/components/Modal500.tsx b/src/app/components/Modal500.tsx
index 59844cc..a289650 100644
--- a/src/app/components/Modal500.tsx
+++ b/src/app/components/Modal500.tsx
@@ -1,6 +1,6 @@
-import React, { ReactNode } from 'react';
+import React, { ReactNode, useCallback, useState } from 'react';
 import FocusTrap from 'focus-trap-react';
-import { Modal, Overlay, OverlayBackdrop, OverlayCenter } from 'folds';
+import { Modal, Overlay, OverlayBackdrop, OverlayCenter, PopOutContainerProvider } from 'folds';
 import { stopPropagation } from '../utils/keyboard';
 
 type Modal500Props = {
@@ -8,23 +8,8 @@ type Modal500Props = {
   children: ReactNode;
 };
 export function Modal500({ requestClose, children }: Modal500Props) {
-  const handleClickOutside = (e: MouseEvent | TouchEvent | FocusEvent) => {
-    const target = e.target as HTMLElement;
-    
-    // Don't close if clicking on a popout menu, overlay, or other portaled content
-    // Check for common portal container elements and popout menus
-    if (
-      target.closest('[role="menu"]') ||
-      target.closest('[role="dialog"]') ||
-      target.closest('[data-floating-ui-portal]') ||
-      target.closest('.folds-overlay') ||
-      target.closest('.popout')
-    ) {
-      return false;
-    }
-    
-    return true;
-  };
+  const [modalEl, setModalEl] = useState<HTMLDivElement | null>(null);
+  const modalRef = useCallback((el: HTMLDivElement | null) => setModalEl(el), []);
 
   return (
     <Overlay open backdrop={<OverlayBackdrop />}>
@@ -32,13 +17,15 @@ export function Modal500({ requestClose, children }: Modal500Props) {
         <FocusTrap
           focusTrapOptions={{
             initialFocus: false,
-            clickOutsideDeactivates: handleClickOutside,
+            clickOutsideDeactivates: true,
             onDeactivate: requestClose,
             escapeDeactivates: stopPropagation,
           }}
         >
-          <Modal size="500" variant="Background">
-            {children}
+          <Modal ref={modalRef} size="500" variant="Background">
+            <PopOutContainerProvider value={modalEl ?? undefined}>
+              {children}
+            </PopOutContainerProvider>
           </Modal>
         </FocusTrap>
       </OverlayCenter>
diff --git a/src/app/features/settings/audio/Audio.tsx b/src/app/features/settings/audio/Audio.tsx
index 79485a7..9f0e659 100644
--- a/src/app/features/settings/audio/Audio.tsx
+++ b/src/app/features/settings/audio/Audio.tsx
@@ -1,8 +1,9 @@
 /* eslint-disable no-console */
-import React, { useEffect, useState, MouseEventHandler } from 'react';
+import React, { useCallback, useEffect, useRef, useState, MouseEventHandler } from 'react';
 import {
   Box,
   Button,
+  color,
   config,
   Header,
   Icon,
@@ -450,6 +451,10 @@ export function Audio({ requestClose }: AudioProps) {
   const [speakers, setSpeakers] = useState<AudioDevice[]>([]);
   const [settings, setSettings] = useState<AudioSettings>(loadAudioSettings);
   const [permissionStatus, setPermissionStatus] = useState<'granted' | 'denied' | 'prompt'>('prompt');
+  const [micTestState, setMicTestState] = useState<'idle' | 'testing' | 'done' | 'error'>('idle');
+  const [micLevel, setMicLevel] = useState(0);
+  const [speakerTestState, setSpeakerTestState] = useState<'idle' | 'testing' | 'done' | 'error'>('idle');
+  const micAnimFrameRef = useRef<number | null>(null);
   const [showRemoteCursor, setShowRemoteCursor] = useSetting(settingsAtom, 'showRemoteCursor');
   const [livekitServiceUrl, setLivekitServiceUrl] = useSetting(settingsAtom, 'livekitServiceUrl');
 
@@ -555,58 +560,73 @@ export function Audio({ requestClose }: AudioProps) {
     saveAudioSettings(newSettings);
   };
 
-  const handleTestMicrophone = async () => {
+  const handleTestMicrophone = useCallback(async () => {
+    if (micTestState === 'testing') return;
+    setMicTestState('testing');
+    setMicLevel(0);
     try {
       const stream = await navigator.mediaDevices.getUserMedia({
         audio: settings.microphoneId ? { deviceId: { exact: settings.microphoneId } } : true,
       });
-      
-      // Create audio context to visualize
       const audioContext = new AudioContext();
       const analyser = audioContext.createAnalyser();
+      analyser.fftSize = 256;
+      const dataArray = new Uint8Array(analyser.frequencyBinCount);
       const microphone = audioContext.createMediaStreamSource(stream);
       microphone.connect(analyser);
-      
-      // Quick test - just log that it works
-      console.log('🎤 Microphone test: Audio stream acquired');
-      
-      // Stop after a short delay
+
+      const tick = () => {
+        analyser.getByteFrequencyData(dataArray);
+        const avg = dataArray.reduce((a, b) => a + b, 0) / dataArray.length;
+        setMicLevel(Math.min(100, Math.round((avg / 255) * 100 * 3)));
+        micAnimFrameRef.current = requestAnimationFrame(tick);
+      };
+      micAnimFrameRef.current = requestAnimationFrame(tick);
+
       setTimeout(() => {
+        if (micAnimFrameRef.current !== null) {
+          cancelAnimationFrame(micAnimFrameRef.current);
+          micAnimFrameRef.current = null;
+        }
         stream.getTracks().forEach((track) => track.stop());
         audioContext.close();
-        console.log('🎤 Microphone test: Complete');
-      }, 2000);
+        setMicLevel(0);
+        setMicTestState('done');
+        setTimeout(() => setMicTestState('idle'), 2000);
+      }, 3000);
     } catch (e) {
       console.error('Microphone test failed:', e);
+      setMicTestState('error');
+      setTimeout(() => setMicTestState('idle'), 2000);
     }
-  };
+  }, [micTestState, settings.microphoneId]);
 
-  const handleTestSpeaker = async () => {
+  const handleTestSpeaker = useCallback(async () => {
+    if (speakerTestState === 'testing') return;
+    setSpeakerTestState('testing');
     try {
-      // Create a simple test tone
       const audioContext = new AudioContext();
       const oscillator = audioContext.createOscillator();
       const gainNode = audioContext.createGain();
-      
       oscillator.connect(gainNode);
       gainNode.connect(audioContext.destination);
-      
-      oscillator.frequency.value = 440; // A4 note
-      gainNode.gain.value = 0.1; // Low volume
-      
+      oscillator.frequency.value = 440;
+      gainNode.gain.setValueAtTime(0, audioContext.currentTime);
+      gainNode.gain.linearRampToValueAtTime(0.15, audioContext.currentTime + 0.1);
+      gainNode.gain.linearRampToValueAtTime(0, audioContext.currentTime + 1.0);
       oscillator.start();
-      console.log('🔊 Speaker test: Playing tone');
-      
-      // Stop after a short delay
+      oscillator.stop(audioContext.currentTime + 1.0);
       setTimeout(() => {
-        oscillator.stop();
         audioContext.close();
-        console.log('🔊 Speaker test: Complete');
-      }, 1000);
+        setSpeakerTestState('done');
+        setTimeout(() => setSpeakerTestState('idle'), 2000);
+      }, 1200);
     } catch (e) {
       console.error('Speaker test failed:', e);
+      setSpeakerTestState('error');
+      setTimeout(() => setSpeakerTestState('idle'), 2000);
     }
-  };
+  }, [speakerTestState]);
 
   return (
     <Page>
@@ -666,15 +686,25 @@ export function Audio({ requestClose }: AudioProps) {
                         selectedId={settings.microphoneId}
                         onSelect={handleMicrophoneSelect}
                       />
-                      <Button
-                        size="300"
-                        variant="Secondary"
-                        fill="Soft"
-                        radii="300"
-                        onClick={handleTestMicrophone}
-                      >
-                        <Text size="T300">Test</Text>
-                      </Button>
+                      <Box direction="Column" gap="100" alignItems="End">
+                        <Button
+                          size="300"
+                          variant={micTestState === 'error' ? 'Critical' : micTestState === 'done' ? 'Success' : 'Secondary'}
+                          fill="Soft"
+                          radii="300"
+                          onClick={handleTestMicrophone}
+                          disabled={micTestState === 'testing'}
+                        >
+                          <Text size="T300">
+                            {micTestState === 'testing' ? 'Testing...' : micTestState === 'done' ? 'Done ✓' : micTestState === 'error' ? 'Failed' : 'Test'}
+                          </Text>
+                        </Button>
+                        {micTestState === 'testing' && (
+                          <Box style={{ width: toRem(80), height: toRem(6), background: color.Surface.Container, borderRadius: toRem(3), overflow: 'hidden' }}>
+                            <Box style={{ width: `${micLevel}%`, height: '100%', background: color.Primary.Main, transition: 'width 0.05s ease' }} />
+                          </Box>
+                        )}
+                      </Box>
                     </Box>
                   }
                 />
@@ -703,12 +733,15 @@ export function Audio({ requestClose }: AudioProps) {
                       />
                       <Button
                         size="300"
-                        variant="Secondary"
+                        variant={speakerTestState === 'error' ? 'Critical' : speakerTestState === 'done' ? 'Success' : 'Secondary'}
                         fill="Soft"
                         radii="300"
                         onClick={handleTestSpeaker}
+                        disabled={speakerTestState === 'testing'}
                       >
-                        <Text size="T300">Test</Text>
+                        <Text size="T300">
+                          {speakerTestState === 'testing' ? 'Playing...' : speakerTestState === 'done' ? 'Done ✓' : speakerTestState === 'error' ? 'Failed' : 'Test'}
+                        </Text>
                       </Button>
                     </Box>
                   }