Can You Hear Me Now?
Xbox Live's audio chat has always been a bit weak. It's a fact that Microsoft has come to see as something that should be improved, and have already set it in motion. When Xbox Live receives it's update for the Xbox Kinect this fall Microsoft will be upgrading the codec used for voice chat to something a bit more bandwidth intensive. This not saying much since the current codec uses only 64kb of your connection when you talk.
Xbox Live Studios' own Jerry Johnsonwas quoted in saying "it's time for us to move on. Especially if we want to think about broadening - a crackly headset on the top of your head – not what people think of when they talk about popular entertainment." Well said my friend.