Is it usb or does it have separate speaker and mic plugs? You could get an external mic and not use the headset mic.
My headset just did the same thing. I bought a new $10 headset with mic at frys. It will somehow get broken sometime in 2011 and I will just buy another one. I havent found that $60 headsets last any longer than $10 headsets so I just get the cheaper ones.