This product allows you to use any set of headphones with your xbox 360 while still using game chat. Simply buy this product and any Microphone with a 3.5mm connector, I got this one http://www.amazon.co.uk/gp/product/B001MNX9WK and you can use your normal headphones for online gaming. Remember to change the console settings to put the voice through the speakers as you will not be using the headset connection. I also changed the game chat volume to 10 while reducing the game sound to 1 in the settings to make sound levels usable.
The product works great and at this price is a highly recommended. I have taken one star away as the packaging was very poor it arrived loose in an envelope.