I had this problem of echo as well and it seemed to start after one of the Xbox Live updates. I used an AV8R for a long while and never had problems then it suddenly started and Pope, Bucket and players mentioned severe echo.
I modified my Xbox headset so that the mic and earpiece cables ran separately and were not in the same sleeve, it seemed there was some cross talk occuring (audio recieve signal bleeding over to the Mic signal within the cable its self). It seemed to help but I cannot remeber if it totally cured the problem.
I will set my XBox up and have a chat with you regards my solution, been a long while, hopefully get a game of BoP if theres a session.
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MP ATAG_EvangelusE
AMD A8 5600K Quad Core 3.6 Ghz - Win 7 64 - 8Gb Ram - GTX660ti 2Gb VRAM - FreeTrack - X52 - Asus 23' Monitor.
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