Help needed with DreamGear Elite Headset to XBox360

I am usually pretty proficient with techy stuff but I am stumped. I have connected the Dream gear Elite Wired Headset via USB to my Xbox 360 (2012 Halo Reach Special Edition) and I cannot get the game sounds to play through the headset. I am having no problem with hearing/speaking chat. Am I missing a setting on the xbox?????

I have the headset connected to the wireless controller. The headset is connected to the control box that allows you to increase/decrease game volume, xbox chat volume, ps3 chat volume, and mute. The control box is connected to the Xbox via USB. I am not using the red & white audio cables with the green head.

Any info and help you can provide would be greatly appreciated.