Static issue with microphone

[Not a Padawan]

So I have a headset with a microphone that worked perfectly fine, until one day it stops doing that exact thing, working perfectly fine.

It stopped picking up any noises expect a weird combination of static and a hissing noise (like a balloon whistling with its last breath).

The same sound plays back to me, which is very subtle, but almost ear deafeningly loud when boosting the volume.

It is detected as a microphone when plugged in.

Also, when it makes the loud noise, the green bar in the microphone rises, but at the speakers it does not (despite me still hearing it, maybe too well).

I have Windows 7 and Realtek HD Audio Manager installed.

If you have questions, I will answer if I am able.

I am absolutely stumped, any help is appreciated.