I admit I have not read through a large portion of this thread, so sorry if any of my questions have been answered at some point.
I have an Auzentech Prelude 7.1 and am using coax SPDIF out to an Audio-GD NFB-10SE and then to Hi-FiMan HE-5LE phones, balanced. I am specifically interested in getting better positional audio in games. My big game right now is Mass Effect 3's multiplayer. I can confirm that the X-Fi's "advanced features" are not doing a whole lot through digital out. I have tried Dolby Live, but it only seems to do anything when I set windows to 48khz, and then it just makes awful noise. I have tried setting "What You Hear" to listen, and activating the speaker out to make the extra features work, and they do technically seem to work, but I get a lot of distortion for some reason. I have also tried using Alchemy with ME3, and it seemed to add some EAX effects, but they seemed heavy handed, and positional awareness actually went down because there were just too many wonky echos.
I downloaded RightMark 3D sound that was mentioned on the first page. For whatever reason, it will only let me use Direct 3D Software weather I'm on SPDIF or speaker out. And weather i use digital, or listen through "What U Hear," the subjective positioning is really poor. Much worse then what I seem to get while actually gaming.
The reason I'm posting before doing more research is that I just noticed that Newegg has the Creative Recon3D Fatality on sale for $90. If this is something I should jump on, then I don't want to miss it. I also noticed some talk a few pages ago about SBX something, and I don't know if my Prelude will do it at all. Any input would be great! I'm going to go do more reading about these new Creative cards..