Turtle Beach X41 Xbox 360 Wireless Gaming Headset $105 at eBay
Buy.com has the Belkin BP112230-08 Pivot-Plug 12-Outlet Surge Protector for $32 - $10 rebate [Exp 9/30] = $22 with free shipping. Includes 8 pivoting outlets for extra setup flexibility, plus 4 regular outlets. [BizRate]
Belkin BP106000 Pivot-Plug Surge Protector $14 + $7 shipping = $21 shipped
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this is hot, i'm using it right now to power the cpu, etc.
For $22 you're not going to get much in the way of surge protection. If you want something that will actually work, get a Panamax.
I would have to disagree with #2. Having the ability to pivot the outlets I plug my high-end electronics into more than makes up for any lacking of surge protecting ability. It's just plain fun!