Does it only do it with this game? Do you happen to be in a canyon? I remember when I played halo without eax, then got a new sound card, the amount of echo drove me crazy I went back to my crappy card

.
Seriously though, there might be a setting somewhere. I know with my audigy that I can set it to where if it detects a program is on to change how sound is played, like to it sound like im in a stadium when I play UT3, which adds a bit of echo.
Could also be your speakers...
EDIT: Is your mic next to your speakers?