Here is link to a photo of my X1 (if a public Flickr link will work - not sure), along with text of an email I sent to a friend who asked for more detail from me. I had not known about the pending X3 - looks good.
http://www.flickr.com/photos/wettlins/1325474508/
I hope this headset holds up long term, because so far I could not be more pleased with the results. Having separate volume controls for chat voices and game sounds is the key for me. I was able to make your voice loud enough to understand without also having to blast the game sounds. If the game sounds are too loud it’s hard for me to talk without unconsciously shouting.
This model is the Turtle Beach Ear Force X1. There is an “X2” model which is wireless (except for one wire connecting the headset to your controller for voice chat). In town yesterday I only saw that model for $100, but I think you can get it online for $60. However, I read some reviews that stated it was difficult to hear chat with the X2 because there are not separate game/chat volume controls like the X1. So I thought it was safer to go with X1.
Wiring for this sucker: in the picture you can see a white junction box with a green LED – that is the powered amplifier for the headset. It also contains the port for attaching the short voice chat cable to the controller, the volume switch for game sounds, and the mute switch for chat. The part that attaches to the controller is the same connector as your regular headset, and contains the volume switch for chat. (why they didn’t put the mute chat in the same spot as the Xbox headset, I have no idea).
What you don’t see in the pics is the rest of the cabling: the cable continues on and splits one more time: one lead is the USB power cord that plugs into the console, and the other lead is the RCA audio cables that go into your TV. The red/white RCA jacks are actually splitters, so you can still get sound from your TV if you choose to without unplugging any cables. But as it stands I just keep the TV volume at zero and use the headset.
The cabling is not as bad as it sounds. While playing I’m just dealing with the main cable going to the TV, and the short cable going to the controller for chat, which I’m already used to.
I guess I used them for three hours last night, and they never hurt my head or got uncomfortable other than slightly sweaty ears.