As we all know, headsets are optimal for both Skype (or other voice services) as well as in-game communication. No body likes microphones that echo back noise from the room, as well as from the speakers.

I recently lost my treasured Halo 2 branded over-the-head headset which I snagged on Buy.com for a whopping 10 bucks. It lasted me a year, but I now look for something more:

I am looking for a headset with good audio quality (good for music and such) and a passable mic (understandable to the listener on the other end.) Preferably as cheap as possible.

Anyone have any recommendations?

I use a great pair of headphones (sennheiser hd 595) with a xbox mic (draped around my neck) plugged into a 360 controller synced with my PC.

I find this method optimal because I don't have to worry about having to find a headset with good audio quality. However if cords piss you off you could go with a bluetooth headset and just use the mic with a nice pair of headphones. Windows sees these devices as separate sound cards.

I use a similar method, Sennheiser HD555's with a Clip On microphone that came with the Ice Mat In Ear Headset. I use the ear buds for my iPod, PSP and DS and the Microphone and extentsion cable for my PC.

If you want a relatively cheap and durable headset, the Sennheiser PC151s are a great choice. I had them for about 3 years before I ended up breaking them over nerdrage.

I have an MS LifeChat LX-3000 that I got for $40.  I use it for teleconferences at work and absolutely love it.  The large cans drown out the sound of my coworkers complaining all of the time.

I am currently using the Creative Labs Fatality headset. It has a detachable mike that bends, and is very comfortable for the full specs check

Cheap or expensive?  
 
If you looking for something cheap just pick up a $25 Logitech pair, work just fine.

" I am currently using the Creative Labs Fatality headset. It has a detachable mike that bends, and is very comfortable for the full specs check

http://www.newegg.com/Product/Product.aspx?Item=N82E16826158051

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Astro Gaming A40 System >>

I use a Bose headphones with my TV and Astro A40's with my PC.  Neither of them are cheap by any means.  I have always had good experiences with Logitech and Sennheiser in the past and you can get some of their sets pretty cheap and they are very good for the money.  Newegg.com is a great place to order from.