I'm using a brand new headset (albeit the one that comes free with the XBox) but even though the icons in the lobby show other people talking, I'm not hearing anything. I know my mic's working as my icon flashes when I talk. (yes, I've made sure the volume's turned up and the it's not muted).
Is anyone else having this problem? Can anyone suggest a solution? Are there any systems settings I ought to have a look at?