So I am basically clueless on how to transfer bits via audio without data loss (doesn't noise corrupt the bits?) Does anyone have any links or resources on how to do a 'hello world' of audio-based data transfer?
You can also add a little redundancy in longer messages so you can tell if it's corrupted or if only a few bit's are flipped you may be able to recover. Also, devices can downgrade their bandwidth to handle some noise. Think of it like someone saying Tango when they mean T, if you hear T or ango you know they both stand for T.
You may want to check out this video. http://hackaday.com/2011/07/10/sound-card-microcontrollerpc-...