Yeah, the X-Fi is a pretty nice card and has a great audio processor in it, but Creative consistently bungles up drivers and enables a bunch of things that makes your audio sound like crap. When I first installed my X-Fi, everything sounded horrendous until I went in and turned all of the audio processing junk off (I keep the "crystallizer" on slightly when I use my speakers, since it makes the highs and lows sound crisper with those speakers; I turn that off with my headphones, though). The end result is that it's noticeably better than the onboard sound. It's kind of silly that it actually sounded worse than onboard when I first installed it, though. Way to go, Creative.
It's pretty awesome that the guys from Psyko actually took the time to help you get things sounding good. It's good to see companies that actually give a damn about their customers. I'll have to look into them next time I'm looking for a set of headphones.