In stock form, mine works pretty well, but it definitely has static when using the connector with the mute/volume switch. Running the cable straight into the controller works much better, and almost entirely removed the static problem for me. If I need to mute, I can pull the cable out just as easily as flip the switch.
For those of you reporting zero functionality, make sure that you've pushed the cable end that attaches to the headset all the way in. With a little bit of force, it fits a little more snug. This was also an initial source of static, but hasn't been a problem since I re-checked the connection.
Per the complaint of the headset being a little too tight... I agree. I've got a pretty big head, so I went straight for the furthest extended setting on the headset. After that started to get sore, I went the other direction with it. I found that having the headset extended out just one click is pretty comfortable. If it continues to be a problem, I'll probably shave the pad on the non-speaker side down a little.
Final verdict: Getting three of these headsets for under $17 was a pretty awesome deal.