Turtle Beach Ear Force x11 Amplified Gaming Headset for Xbox 360 SEALED REFURBISHED for $27.99 + free shipping
These work great for us cheap gamers who want high quality sound.
I bought these around a year ago for 29.99 still going strong.
Note* if your tv does not have an audio out you will need to buy an adapter off amazon or ebay that plugs into your xbox and gives you an audio out! - I had this problem and was PISSED when i got them and still had to wait to use them. that part can be found here for $4.30 http://www.amazon.com/Audio-Cable-Adapter-XBOX-360-Slim/dp/B002P35JMO/ref=sr_1_1?ie=UTF8&qid=1363206647&sr=8-1&keywords=Turtle+Beach+adapter