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Headset Help

So I got a headset for my 360. It works fine on the dashboard. I can record and send voice messages just fine. But when I go live with it, there's no voice output. I've only tried it on Halo 3 (which would be the only function for it) but it doesn't work. The status flickers between having no mic connected, to having it connected at full blast, but there's no voice output.

Any tips? This is a wired headset so don't worry about the wireless stuff.