Headset Speaker problem.

[PC Wins]

Hi, I am having a problem when every time I connect my Xbox 360 wired controller into my PC through the USB ports, the audio sound from my Razer Megalodon USB Headset mutes. It mutes sound from web browsers like Youtube videos, playing any PC games, mp3 songs and videos won't work if I open them, so basically like the whole audio sound in my computer gets muted. But when I unplug the Xbox 360 controller from the USB port, the audio sound on my Razer Megalodon Headset goes back to normal. I tried few things in the Control Panel sounds option, but still couldn't find a way to fix this. I even tried to putting it in to different USB ports, but yet no luck.

P.S: I never had this problem before on my old Logitech USB Headset.

Here are my specs:
Motherboard: BioStar TH67+ V6.0
CPU: i7 2600K Sandy Bridge
Video Card: AMD XFX HD 7970 DD Black Edition
RAM: 16GB DDR3
Operating System: Windows 7 Ultimate 64-bit
[I did upload all the drivers from the Drivers and Installations CD when I reformatted thinking it might fix the problem, but it didn't solve the problem. Also, I don't have a sound card in the computer, but just a built in 7.1 surround sound.]

[cl0udedth0ught]

I would try updating the sounds drivers to the latest from the biostar website. Also, download the latest drivers for the xbox controller from microsoft. The drivers from you drivers installation cd most likely aren't the latest ones available.

[Dogg]

Has it ever worked?

If I had to guess, I'd say it's a conflict or driver conflict as the Xbox controllers have an audio port.