BleepingComputer.com: Dynex USB Headset Microphone producing strange noise

It seems that just when I connected my Xbox 360 pc controller, my Dynex USB Headset began acting up.

Whenever I use the microphone function, the audio comes out as though I was talking through a Nintendo Entertainment System (8 bit-ish sound), no matter what I play the sound through. (So it sounds the same, whether I play it through my Creative desktop speakers or through my headset.)

I've tried almost every kind of troubleshooting technique I could think of.
Removing the drivers then installing older ones worked for awhile, then began acting up again.
I tried rebooting (of course), that didn't fix it.

Updating sound drivers; nada.

I recall disabling the sound chip through my BIOS, booting, rebooting, enabling it, then booting, although that only fixed it temporarily. I've tried the headset in another computer with the same OS, and it worked fine, so I don't think it's the microphone.

I've tried shutting down as many electronics as I could (cellphone, air purifier, xbox controller, unnecessary monitors, wireless mice, even lights), although nothing could fix the odd sounds.

Computer specs:

* MSI P6NGM-FD motherboard
* Windows XP SP3
* Realtek drivers, updated to R256
* Dynex USB Mon Headset


Also, here's a small soundclip of me saying hello, then blowing on the microphone.

Link

If anyone can help, that would be great.

Edit: Moved topic from XP to the more appropriate forum. ~ Animal

Topic moved back to XP at the request of member due to lack of response in External Hardware forum.