Bryan, it was the headset. I went to Radio Shack, got myself a stereo headset that connects to the mic and headset jack and it's working fin. I also got a set of desk speakers with a sub woofer on sale and I'm now enjoying surround engine sound, and talking to my co-pilot through my headset. Something about the USB headset that went bad. I know is not the USB itself because I have other things plugged up to USB and no problem. I even tested TrackIR on the same USB connector I had the old headset on and the connector is fine. Any way, this is solved, but now I just noticed another problem with the start check list. I guess that is another thread to open.

Glad you got that sorted!