Sound troubles

Alright well I have a HP headset, was like $30 at walmart, works great. Problem I'm having however is in games my sound is backwards. Now I know what you're thinking, just turn the headset around. Doesn't work like that the mic only goes down on the left side, no matter how I turn or twist it.

Now when I go into my sound properties and run the test it makes a beep on each side. When it beeps on the left I hear it on the left and so forth for the right. Then when I go in game and have someone walk on my left side I hear it on the right. It makes no sense at all. Now I've been told to try a reverse stereo option. I'm using Windows 7 and didn't see the option anywheres so got a program called Power Mixer. I checked the reverse stereo option on there and it doesn't change anything. So now I'm posting on here and seeing what people have to say about it.