Turtle Beach X41 Xbox 360 Wireless Gaming Headset $105 at eBay
CircuitCity.com has the Creative Xmod USB Sound Device for $30, available for in-store pickup only. "It restores details and vibrance your music and movies lost during compression, making them richer and fuller." Compatible with both PCs and Macs and requires no software installation. [BizRate]
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I don't have this particular unit, but I've been pleasantly surprised with my USB sound device. I assumed that over USB sound would be choppy, but it sounds fine, never a drop out.