Something interesting I figured out is that if you have everything hooked up, audio set to headset only, record a voice message to send to someone and try to play it back to yourself then you will hear nothing. Then.. if you unplug the 360 chat cable from your controller and replay the message you can hear it fine.
Online everyone else can hear me fine but I cannot hear them... but then if I unplug the chat cable from the controller... I can hear them.. but I can no longer speak.. obviously.
So now I am stuck using it with no voice control... which defeats the whole purpose of purchasing this system in the first place... sigh.
I have no idea what is causing this problem as I have take very good care of my equipment. I'm waiting on a response from customer service on my claim... unfortunately I'm out of warranty since December. So I either buy 1 more year of warranty or a new RX unit and HOPE it fixes the problem... really sucks considering how much this system cost to begin with.