This has been discussed extensively on other forums I subscribe to. The best solution right now is the Tritton Warhead headset. It connects wirelessly to the Xbox-360 for chat. The next best solution (what I use) is the official Microsoft wireless headset. This requires the use of speakers though.
Bottom line is that any headset which you have to plug into the wheel will give you problems. Even if it works, it will probably cause your microphone to be super sensitive.
I am aware of that and the purpose of my thread was to hope someone would take on the challenge of creating some kind if interface to resolve this problem.
The Tritton Warhead seems like an expensive solution to the problem.
Well there is an inexpensive way to do it using a MS wireless ear/mic gizmo for chat with game sound via speakers or whatever. You could hack that in various ways for maybe 10-20 bucks used. I got my Trittons for about 225 on sale and with a coupon FWIW. They work well, no complaints. And you can use them via their analog input with PCs, or PS3 albeit w/o chat.