Unable to hear the voices of other players in party and game chat

Yes you can add two, yet with some limitations. Both players will need to be logged into separate accounts, and both can be used to chat with others in an online party chat. However, the two players on the same XBox 360 will not be able to hear each other's
voices in the party chat. This is due to Microsoft disabling local chat on the Xbox 360. Other party members will be able to hear both players, however.

When you say "nothing is heard", do you mean other players don't hear your voice through the microphone, or do you not hear anything yourself?

Do you want to hear party chat through your headset, or do you want to hear game sound as well as party chat?

I know voice chat is disabled in game, but I have yet to hear if party chat is going to be disabled. really want to talk with friends on other games

Party chat is more private, where as in-game chat everyone in that session or within proximity of you will hear your voice, and you can hear their voices.

Hi bucket 911,

You can simply start up a party by yourself. This will disable game chat in many cases preventing you from hearing anyone.

Some games however will have voice chat tied in with the game audio such as the new world of tanks beta for Xbox One. If this is the case, then your only other option is to simply mute the players talking through voice chat. Most online games should have
this option.

Hope this solves your problem.

-rocky