When i plug in my mic i cannot hear my friends talk but it says my mic is in and i am talking.

You used the term "plug in my mic". I assume you mean the microsoft mic and head set. one of the best ways to check the headset and mic. is to go onto microsoft live and attempt to leave someonw a voice message. during the message you will get a message that says your mic is not working. also after you finish the voice message attempt to play if back if you do not hear anything then the problem is with your microsoft head set and attached mic. if new take if back to exchange for another one. there could possibly be something wrong with the port connection on you microsoft controller.