Trying to use XBOX 360 controller with my PC

You can't use the play and charge cable to connect your controller to your PC. It might be detected by Windows but the connection isn't there to allow any of the buttons to work.

The only thing you can do is either buy a wireless receiver for Windows or buy a wired controller. 

It won't work with just the charging cable unfortunately.  The Play & Charge is just that, a charging cable. It was not designed to carry controller data, it only carries power. Even when a 360 wireless controller is wired with the charge cable, the pad is still wireless. 

You need to purchase a Xbox 360 Wireless Gaming Receiver.  If you can still find one as they have been discontinued as a stand alone product.  If your desperate for a 360 controller for your PC and can't find the above receiver, then you'll have buy either a wired pad or a 'Xbox Wireless Controller for Windows'.  The Wireless PC controller includes the Gaming Receiver.  Remember that you can also use these controller with the 360 too.

I'ts funny I just went to Gamestop today looking for a wired controller and the guy their said that microsoft came out with a new update/driver to allow the play and charge kit to work... I have been looking everywhere.. updating my drivers and no luck and now im mad I didnt just buy one anyway because im pretty sure it still does not exist.

If anyone knows more info on this I would be happy, but im pretty sure im just going to have to make another trip back to gamestop yayyy. Oh and do 3rd party xbox controllers work on the pc?

Well what that person told you was wrong, it has never worked with a play and charge.  I'm realy not sure if the third party controlers work, it realy depends on the manufacturer. 

My MadCatz 360 controller works with PC games, so yes third party wired controllers do work on the PC.