I've been using the shitty ones that came with the system, but this thread has inspired me. After researching, I think I'm gonna go with some Turtlebeach X12s.
So I got these. Gamestop is offering $30 trade-in on some of the hot releases right now. Since I completed Uncharted 3 I decided to trade it in and got the X12's($60) for $30.
They may not be wireless, but they sound fantastic. I tried them on Battlefield 3 and you can hear sounds and chatter you never heard before. I felt like I was playing a new game. This definitely improves the gaming experience. Nice crisp sound and base.
I modified the hook up instructions a little that came in the manual so that I can use them for tv shows and movies. The big bonus is that with this set- up I can also use them for the ps3.....without chat though...but I don't chat on the ps3 so it's no big loss.
I tried them on Rage(ps3) and the guns sounded badass!
If any of you are on the fence about getting these...I recommend them. I didn't know what I was missing. Great investment. With a little looking around you can get these for under $50.
One more thing....the instructions say that if you have a new 360 with hdmi that you need an updater. You really don't. If your tv has red/white audio output then you can use this instead. This set up allows you to use the headphones for everything.