DJ said I should post this up.
Recently bought some headphones:
Audio Technica ATH-AD700 Open-air Dynamic Audiophile Headphones with 53mm Drivers with Neodymium Magnet Systems
http://www.amazon.com/Technica-ATH-AD700-Audiophile-Headphones-Neodymium/dp/B000CMS0XU/ref=sr_1_1?ie=UTF8&s=electronics&qid=1272927573&sr=8-1
They are incredibly comfortable, lightweight and versatile. Some people would say that they don't have enough bass, I don't like a lot of bass because it over powers the subtle sounds. It comes with a 1.4" adapter for guitar amps and electric pianos. It plugs into any headphone jack and does not require an external power source to work.
I bought a mic to go with the headphones that sucked ass and then I got this:
Labtec LVA7330 ClearVoice Head Microphone
Incredible quality that fits well with the ad700, goes around the temples and is just a mic, no output. I got compliments about using it on PS3. You can't do much with 360 cause the voice has to go through a shitty 2.5mm wire that cuts down the quality.
My set up isn't a gaming set up until I plug it into this:
Astro Mixamp
http://www.astrogaming.com/products/detail/69/MixAmp/
Simple design gives you full control over game and voice volume with two knobs. Surround sound can be turned off and on with one button. The audiotechnica ad700 headphone doesn't have 5.1 surround sound, what it does have is an excellent sound stage, which provides surround sound through one large speaker as opposed to multiple speakers, its not as defined as 5.1 but it works more smoothly and realistically.
I recommend purchasing this:
12 FT Digital Audio Optical TOSLink Cable Optic 12ft
http://www.amazon.com/gp/product/B000UHXHSK/ref=s9_simh_gw_p23_i1?pf_rd_m=ATVPDKIKX0DER&pf_rd_s=center-2&pf_rd_r=0X3KCYGFQJSQ0GEQ9RS6&pf_rd_t=101&pf_rd_p=470938631&pf_rd_i=507846
Eliminates left and right audio cord necessity and improves on the sound quality, fits in the PS3 and 360 like a glove.
Whole setup works on PC, PS3 and 360, runs about $225 if you know where to look.
Other options:
Astro headset and mixamp
http://www.astrogaming.com/products/3/Audio-Systems/
TurtleBeach(Awesome set up for 360 and decent one for both consoles.)
http://www.turtlebeach.com/
Tritton Pro(sold at best buy)
http://www.trittontechnologies.com/
If you have questions, post up, I took a lot of time to research the proper choice, had to figure out what I was talking about and if you're thinking about upgrading you too should research. Feel free to post up your sound systems as well.