[Razargh]

Can anyone tell me how I should set this up for the best sound and 3D sound emulation.

 

[NamelessPFG]

This is how you need to do it for CMSS-3D Headphone to work as intended. Otherwise, software-processed audio won't provide the extra sound channels when they look at the Windows speaker setting. After that, it's simply a matter of turning CMSS-3D Headphone on and off.
 
For music playback, you might want to switch it to Audio Creation Mode and enable bit-matched playback (provided it's a true X-Fi card), and then feed it with ASIO from a media player like foobar2000 with the right output plugin. That should ensure that your music is as pure and untouched as possible.

 

[AxelDaemon]

You need to keep it in the former setting if you intend on watching it with movies too right?

 

[NamelessPFG]

Movies are an odd case, depending on what you're using to watch them.
 
If the video playback software doesn't have anything like Dolby Headphone built-in, then I'd definitely advise using the former setting. If it does, then it's a matter of preference between the technologies at hand.

 

[AxelDaemon]

Figured I'd ask, what video player do you use to watch movies/anime etc whatever?  And do you run codecs if they're provided by said player? Or you have them disabled so the audio is streamed raw and instead are processed instead by soundcard, external DACs etc?  Least I'm guessing that's how it works.