Two Man O' War problems

I got a wired Razer Man O' War 7.1 headset back in December and I've tried avoiding using it for communication for the following reasons:
1.) The mic makes my voice sound very digitized and like I'm speaking into a can.
2.) The mute switch doesn't mute all audio input.

To start, let's look at the mic quality.
I've watched multiple videos of people testing the mic and for the most part it sounds nice and clear. However, mine sounds like the cheapest mic I've ever spent money on. I've even went into the headset settings and tried tuning it differently, but nothing seems to make it any better.

Now to the mute switch problem...
When I flip the switch to mute the mic or something else in the headset picks up the audio from my PC instead.
So let's say I'm talking to my friend and then I mute the mic, after that I start listening to music. My friend will be able to hear the music.
It's as if the mute switch instead switches the audio from mic to some other input from my PC.
Anybody else ever had this problem?