Configuring the X-Fi Titanium Fatal1ty Pro

Switch it to game mode, which will usually switch on EAX, don't check the headphones options, keep it at two speakers even though you use headphones.

Sorry I didn't notice you are using headphones.

Check out your upmix mode. Try stereo Surround upmix for your headphones rather than Stereo xpand mode. That will give you a simulated surround experience and should drastically improve your gaming experience.

Make sure you are using the crystalizer too. I set mine at 80%.

You may want to turn ON SVM since you are using headphones while gaming. That will keep any huge explosions from blowing your speakers all of a sudden.

Thanks for the feedback, will try all of the suggestions above and reply back.

My biggest concern is to get the best 3D positioning possible with this setup.

Yeah, that will be with the stereo surround upmix mode. However, if you are a headphone kind of guy and can justify buying a $100+ sound card, I would have to recommend the Tritton AX Pro 5.1s. They are incredible with our sound card. I can tell exactly where someone is in relation to me before I see them in a game. There is something like 8 speakers in them if I remember right. You just have to remeber to enable bass redirection and then you'll be blown away by the quality.