It is more than possible to talk directly to both the ISS and Orbiter. Ham radio is an international radio service principally designed to assist in emergencies, and to promote technical knowledge, but also to allow people to talk to one another using better radios than what you can get off-the-shelf at WalMart, using an enormous range of frequencies. You have to study for a test and get a license which is specified by your local communications department of the government (FCC in the U.S.).
Radio range on Earth is limited by several things including: atmospheric absorption, line-of-site (curvature), and interference. The cheap FRS radios you buy at WalMart are UHF meaning they won't be bounced back down to and around the Earth, and they're relatively low power. In deep space, they use substantially higher frequencies for higher bandwidth/clarity, and there's not a whole lot to stop the radio waves till they reach the atmosphere hence the 70m wide receiving dishes on the Deep Space Network.