As measurements have shown, these are truly great for $30. Good response, not too much resonance or ringing, at least past 2KHz, fairly low harmonic distortion, good square waves, etc. Purrin clearly demonstrated these greatly benefit from some simple mods.
The HM5 pads work really well. I couldn't get a seal with the stock pads, nor were they comfortable. The HM5 pads fix that. All you really need is a bit of dynamat to control housing resonance (and maybe an adhesive foam or felt to cover it if it has the reflective top), cup damping, and some material in front of the driver if you find the treble a bit hot.
The below is my mod and some brief notes that I mostly copied/pasted from another part of the intertubes (some slight edits):
My current configuration is on the warmer, laid-back side of things, but still not lacking much in detail and openness of the sound. The spacial cues and openness are actually surprisingly good at times. Fairly clean sounding overall despite the warmth and what I sometimes detect as additional bass (might just be harmonic distortion). I don't mind the dip around 4-5KHz, as it makes it easier for me to listen without fatigue. It's much better than having a peak around that area for me. I can handle 7-10KHz peaks more easily, and thankfully the slightly peaky treble is within the bounds of my tolerance. My configuration is as follows:
1. Layer of Dynamat in back of cups
2. Layer of Creatology foam on top of the Dynamat (in case you're wondering, it's purple)
3. 4 inch-ish long strips of Creatology foam and 2 half-inch-ish strips on the next area above the bottom of the cups, pushed into the corners (it's around half way up to the top of the cups)
4. Fairly thin disc of acoustic stuffing (feels sort of like polyfill) in bottom of cups
5. ~1/2 inch thick disk of what feels to be a medium density packing foam on top of that
6. Dynamat on back of driver magnet, covered with a layer of Creatology adhesive felt (non-stiff kind)
7. Ring of Creatology foam around driver on front side baffle, with a disc of foam or felt on top of that (glued at edges to the foam ring)
8. HM5 pads
I'm very impressed with this headphone and driver, and I'm enjoying what I'm hearing. It's headphones like this that make me wonder why I bother spending more on headphones sometimes. I also wanted to note that for whatever reason, it sounded better to me to put the acoustic stuffing under the foam disk than vice versa. I also had to use very little stuffing with the foam disk in there. I also don't remember exactly where I got the fabric/felt disk I placed in front of the driver. I think it came with a spare pair of ear pads I ordered a while back, but I've ordered too many different ear pads to know which pair it was. Or it came from a stock set of ear pads that I swapped something else for...