Which version of Windows are you using? Am I understanding it correctly that you want to be able to speak into the microphone and head it on both sets of headphones via the splitter?
If you load the sound control panel by double clicking the speaker icon in the bottom right hand corner of the screen, is the microphone muted? Sometimes you need to unmute it be doing the following:
Right-click on the sound icon in the system tray and select Playback Devices (or alternatively, go to Control Panel and select Sounds). Once in the Sounds window, double-click the Speakers options, then go to the Levels tab, and there you need to unmute the microphone icon.
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