When using USB / wireless headphones, no waveout mix doesn\'t work

A group of us get together and share duties as "DJs" in a video chat room. I use iTunes for my music source, and mix using the Conexant waveout mix to combine what I'm saying through my mic and what is coming out of iTunes and then stream the waveout mix into the room.

Everything works fine when I use a wired mic & headphones.

However, I purchased a Logitech H760 USB wireless headset with microphone. While I can hear everything fine through the headset, including when I have the mic activated, nothing goes through the waveout mix. The waveout mix is still enabled, but no sound. Therefore, my great idea of using a wireless headset when I'm playing DJ (and believe me, it's playing, i'm not a professional), doesn't work. Sure, I can listen to iTunes while wandering around the house, but I can't use it for my DJ duties and must remain teathered to my laptop.

I made sure all my drivers are up to date. Searched all over the internet, but mostly come up with all the posts about people not able to find their waveout mix (or whatever it is called on various platforms). I don't have that issue. It works great, except when i plug in the USB receiver for the wireless headphones.

Any ideas? The video chat room software is camfrog.
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