I have searched everywhere for an answer to the volume wheel problem, seems like the people that had the problem also had warranty so it was resolved that way. I took mine apart because I read somewhere that someone fixed there and they said the wheel was out of place so they popped it back in and it was fixed. After taking mine apart I could not see what the problem was, it all looked normal. So I went ahead and ordered a new headset, the Siberia 800, which has some good reviews and I can use it with my ps4 and xbox one.
One comment from Astro, was to let the headset die completely, let the battery drain, then it will be fixed once its is fully charged again, I tried this and it did not work.
I might try to fully drain it then flash the firmware to the headset, I will comment back once I do.
Or maybe some one fixed theirs?