Instructions
Update your Xbox 360 to the latest firmware.
Turn your wireless headset on. Most headsets will blink or light up to give an indication that the headset is turned on. If the wireless headset does not turn on, remove the headset's battery and replace the battery. Try turning the headset on with the new battery. If the headset still does not turn on, then the there is something wrong internally with the headset.
Sync the headset to the Xbox 360. If the headset does not connect or connects to the wrong quadrant, continue on to the next steps. If the headset does connect and connects to the proper quadrant, then try using your headset. The headset should work if it connects. If the headset does not work after fully updating the headset, then there is something wrong internally in the headset.
Disconnect the headset from the controller.
Turn off and disconnect all controllers.
Directly connect the wireless headset to the Xbox 360 using an USB cable. Associate the wireless headset with quadrant 1. If this works, then the problem is with one of your controllers. If this does not work, then there is a problem with your wireless headset and you will need to replace the wireless headset.