So the necessary requirements I would need on the sound card would be as follows.
1)3D Positioning or Dolby Headphone technology for the headset.
2)Dolby DTS Encoding and Dolby Digital Live.
3)Atleast 5.1 Support Via analog cables and optical would be nice to have to test and see which works better.
Also if there is any new sound cards coming out that are worth the wait please let me know as all i could find this
year at ces 2011 is the sound blaster recon 3d external thing that you plug your headset into but then my speakers
dont get a sound card :( . That or the Astrogaming Mixamp would basically serve as the same function except the
Recon does 3D positioning and the Mix amp upconverts stereo to 5.1 via Prologic II technology which fakes 5.1 so
its not all that...
 
This was the only sound card that I chose as a candidate as I hear all the sound blaster products are glitchier now a days.
http://www.newegg.com/Product/Product.aspx?Item=N82E16829271003

http://www.ncixus.com/products/35596/AZTXFF7105551/AuzenTech/
 
good card, 2nd best card out there with the Xfi chip according to my buddy (the Xfi chip is GREAT for gaming)

SirJamesDDJ

I had the Auzen Forte and wasn't all that impressed with it...
Go for the Creative X-Fi Fatal1ty Titanium Pro (not Champion) but wait for it to have a sale down to below $100. Happens once a month or so these days.

Not sure why you said "not Champion", but I have that card and it works great. When on sale the Champion can be had for around $120-$130.

SirJamesDDJ

XrayMan

SirJamesDDJ

I had the Auzen Forte and wasn't all that impressed with it...
Go for the Creative X-Fi Fatal1ty Titanium Pro (not Champion) but wait for it to have a sale down to below $100. Happens once a month or so these days.

Not sure why you said "not Champion", but I have that card and it works great. When on sale the Champion can be had for around $120-$130.

It's just my recommendation to save some money and get the Pro, whilst not having extra cable clutter going toward the front drive bays 

 Different people, different tastes. All is fine with that!        

I have the Creative Sound Blaster X-Fi Xtreme (got it on sale for $30) and it sounds way better than the onboard. I dont really see what the difference is between the cards if they all use the same chip.

You guys are awesome! Thanks for the input.

I was going to buy the Creative sound blaster xifi which was marked from 200 to 150 and the 130 card down to 100 but I've been hearing from alot of people that they have been having driver issues with windows 7. I dont want to get a sound card that is gonna cause me more problems then its worth thats why i was kinda waiting for the new sound cards to come out. These came out in 07-08 so I was thinking that maybe just maybe they will have a new lineup but the only thing announced at CES was the sound blaster recon which is an external xifi chip just for headsets... Keep the good suggestions coming guys thanks again!

I've used the Asus Xonar Essense ST and the HT Omega Claro+, both really good cards.  I upgraded to the Asus card for the built in amp. 
 
Both are rather expensive.  But definitely an improvement over onboard.  They make low end speakers and midrange headphones sound much better.
 
I went with pci cards because I didn't want to take bandwidth away from my gpus.  If you ever plan on going sli that's definitely something to think about.  Especially if you already a 1xPCI-E add on card.
 
Good luck.  

http://www.newegg.com/Product/Productcompare.aspx?Submit=ENE&N=100008658&IsNodeId=1&bop=And&ActiveSearchResult=True&CompareItemList=57%7C29-271-003%5E29-271-003-08%23%2C29-271-002%5E29-271-002-07%23%2C29-132-001%5E29-132-001-S01%2C29-102-021%5E29-102-021-TS
It seems like the Halo is the best choice considering it says it converts stereo over to 3D for headphones...

The problem with that one is it does not look like it has 3 analog inputs for my logitech z5500 5.1 system nor does it have optical :(

Does anyone know of any new sound cards coming out? All these cards came out around the 2007 mark and one would think they would have a newer model after 4 years... Like creative's titanium HD that came out a few months ago. I would buy that but it is lacking the connections for my Z5500 but accomadates my headset perfectly.

The Halo XT has SPIF in/out and an accessory card for 5.1 analog jacks all for the cool price of $250. 
 
It may be cheaper to go with an Auzentech X-Fi Forte 7.1 ($150) or one of the Creative X-Fi Titanium models.

 
Plugging in the Mic disconnects your speakers until you unhook them again. With my Champion Series, I have the sound card control in the front bay of my case. I can just plug and unplug it in the front of the case.
 
          
  
  

With the Asus and HT Omega cards you can switch between analog outputs in the audio control center, no need to plug and unplug. 

I would definently appreciate that but the only thing that I've read that the Halo Claro plus was lacking is the full 3D support for headphones for gaming. It also seems to be a bit more marketed towards pro audio and not so much gaming. Otherwise I was really leaning towards the Claro Plus earlier.

amarkovic

So both of those wires get hooked up from the soundcard to the drive bay right? 2 Wires both output from soundcard and input to drivebay?

  Yes!