USB Headset and Windows: Volume too loud

I have only two issues with my recently purchased headset. The volume is too loud, and the granularity to adjust it is too course. Even on 2/100, the lowest setting, YouTube is screaming at me.

I can live with the seriously messed up audio taper, as long as the minimum volume is somewhat reasonable. Unfortunately, the only way to reduce the mininum volume is:

  1. Double click volume icon in lower, right corner of screen
  2. Set main level to 100
  3. Set individual audio sources to 10 (all of them! Redo this, when you have a new Application open, such as games, media player, etc...)
  4. Set main level to 10.

In the screwed-up world of Microsoft User Interfaces, this is the only way to attenuate all sound sources by some factor (10? It almost feels like a linear scale), before the sound gets sent to the speakers.