I realize that many of my posts would be much more helpful if they had detailed instructions on how I was able to do what I did. This is one of those times where I wish I had taken more pictures while working on them, instead of just afterwards. I don't even have a decent before picture.
Essentially, I removed the mic plug and cable and soldered it directly into the volume/mic control
The silver adapter, in the right photo above the mic plug, makes it so I can plug it directly into my Xbox 360 controller.
Now the distance from the headset to my controller is perfect with no more extra cables. So much nicer than what I was doing before.
If I ever get my hand on another one I'll be sure to do a How-To step-by-step guide. And if anyone would like me to mod theirs I'll do it for free. Just shoot me an email and we can work out the details.