Verified answer

If it is echoing, then it is because of feedback. Sit further away from the TV (or surround sound) speakers, or turn the microphone volume down through the settings (see below) and this will stop the echoing and any additional feedback.

XMB > Settings > Accessory Settings > Audio Device Settings > Microphone Level

I have mine on level 3, but you will need to adjust yours according to how close you sit to your TV (or surround sound). The lower the volume, the less feed back, but you may need to talk louder, again, depending on how close you sit to the TV (or surround sound). If you have to talk louder, than turn the microphone volume up and sit further away from the TV (or surround sound).

i think it is supposed to eco back what you said i mean i think so it does that to me i don't find a problem with it but if you don't wanna hear turn your headset down