So when your playing multiplayer, is there a way to set your headphones up so only people who are talking comes through your headphones, rather than everything? I guess more or less it would be setup like playing on a console such as the Xbox 360, where all the music and sound effects go through your speakers and the headset is for listening to people talk and answering them.

not any way i know of, unless your headset comes with the ability to tune game/voice sound.