just checking, but the mic cannot be played on the same account as any other instrument..if you are trying to play guitar while singing, for example, the headset must be attached to a controller, and a secondary acccount, not straight into the guitar.
Other than that, the standard headsets that come with the 360 are designed to try to eliminate background noise//it could simply be that you aren't singing loud enough for the mic to pick up..try angling it towards your mouth a little more.
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