Any USB headset will work. I used a cheap Logitech USB headset. Only problem was it didn't have a button to mute the mic and most headsets at that price range don't. You might have to go a little higher (~$45) to get one that does.
Also, build quality on the cheap ones tend to be not so great and I've gone through several cheap headsets. You get what you pay for that's for sure. I use the Xtatic SR from Sharkoon (~$100) and it's been through hell and still works great. Works with both PS3 and XBOX 360.
I recommend the Tritton AXPRO Dolby Digital 5.1 Surround Sound if money ends up not being a problem later ($150-$199).