The Fatal1ity headset wasn't bad. It had a very good mic. Great noise cancellation. Music not too bad. The cord was pretty cheap and it split right before the volume/mute thingy. The plastic tore away exposing the wiring and eventually that broke.
I went to Fry's and checked over the selection. Price really isn't an object when it comes to general PC peripherals. There were headsets from 20's to 250 dollar range.

I ended up getting the Corsair HS1 which ran $99 (can get them cheaper)
http://www.everythingusb.com/corsair-hs ... 20486.html
This is the kind of total ear covering headset that cuts you off from the rest of the world so if you need to hear stuff (people, kids, etc) then you probably want to look elsewhere.
Checking out Newegg's reviews, the negatives are bad wiring (hey, same thing that trashed my last headset) and bad mic (which I use a lot)
With two important items in the negative column, I still bought them.
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These are very comfortable. Most headphones don't completely cover my ears but these do. That, combined with very comfy memory foam, sets them apart from my old Creative headset and the high end Logitech G35 headset I had tried awhile back
These are not for music. That said. Movies and games sound incredible. I played the highest quality movie I had which is 1080P avatar high bitrate (20GB file). It's like listening the movie for the first time again with all the sounds you pick up that just aren't there if you don't have decent surround.
You need to of course, activate the 5.1 or 7.1, otherwise the immersion isn't going to happen.
Aion is at the top of the heap when it comes to graphics and audio in MMOs. Using these headphones in 5.1 or 7.1 mode made a huge difference. I'm kinda pissed I've bee missing out on quality audio in my headset.
On the negative side. People picked up the sound of my PC fan, etc. while using Vent. My previous headset had excellent noise cancellation.
I can't recommend the Corsair HS1 USB Headset for music or for someone that uses voice a lot in gaming but for Immersion in Games and Movies, they're excellent. This is Corsair's first go at gaming headsets. Hopefully they'll learn from it and improve the Mic and wiring. I still haven't done much tweaking on the mic so it may be improvable.
I'll be putting gaming headsets on my radar from now on to research them. I don't think you necessarily need to spend huge for them but even in the 100.00 range, there's a big difference in quality as I just found out. If something comes along in the 250 range that makes a difference, I'll grab them right away. There are some headsets that have the wiring to work with the big three: PC, Xbox and PS3.
Ongoing project.