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1: What is the phantom power for?
A. Some microphones, particularly condenser type mics, need to receive a voltage to power the condenser. Pressing in the phantom power switch will send the needed voltage to both of the Audio Buddy’s microphone inputs.
2: If I have the phantom power switch on, how will that affect the other mic input, as well as the high impedance guitar input.
A. Sending phantom power to a dynamic mic, or one that doesn’t require power, will not affect the microphone adversely. This may not be true on older ribbon type mics, or microphones that have their own power supply. You should check with the manufacturer to make sure.
As for the high impedance input, phantom power travels along the third, or ground wire of the 3 conductor XLR jack. Therefore, it is not part of the high impedance signal at all.