I use Dolby Digital Live 5.1 (DDL5.1) on my X-Fi Titanium PCIe with latest PAX drivers. The X-Fi Audio Control Panel forces DDL5.1 via optical cable into my Turtle Beach EarForce x41 headphone receiver, and then to my wireless headset/headphones. DD5.1 is detected by the receiver and it all works like it should. These headphones only emulate DD5.1, but the effect is like true DD5.1, not like mixed Creative CMSS-3D or Dolby Pro Logic effect.
What I am confused about are the settings. I want Windows and games to think I have a 5.1 speaker setup. Thus games would produce surround sound, have it processed by my X-Fi card into Dolby Digital 5.1 (unless the game is in DD 5.1 format already) for my headphones, not speakers. I am afraid that selecting "Headphones" in Windows 7 sound settings, Creative X-Fi Audio Control Panel, media players/codec utilities, and games would produce non-surround stereo sound (which would go through X-Fi DDL5.1 processing regardless). However, wouldn't setting sound settings to "headphones" (stereo?) worsen 5.1 positioning and DD5.1 effect/sound quality?
I set everything to 5.1 until I get a clear answer.
Also, I know DDL5.1 is needed to send multi-channel signal over SPDIF as it normally can send only 2 channel signal. Does that mean DD5.1/surround sound via analogue cables is of higher quality? My headphones are wireless, which adds to noise/distortion/lower quality sound when comparing to a wired headset. I can't hear any of that noise, distortion, etc., and not even crackling (unless I distance myself or have a WiFi signal interruption). Wouldn't switching from digital to analogue worsen sound quality even further? Turtle Beach states (not a quote) that EarForce x41 is wireless, but digital and being digital improves wireless sound quality and sounds better than analogue wireless.

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