which Virtual 7.1 Soundcard and Audiophile headphones should I get?

hope this link will help you a little:
http/www.overclock.net/t/1014902/ocns-most-recommended-audio-products#

The links to the headsets provided are good headsets. How well they do for surround sound gaming is another depending on your mobo sound chip or a sound card. Gaming headsets have a mixamp type device that handles the DSP surround, some headsets use multi speakers in the headsets.

First post what you have computer spec wise and we can help. The Razor's should of worked ok unless setup wrong etc...

Happy surround, the Prisoner...

Well, hard to break it up, but most 'gaming headsets' are... well... mildly put it "crap".
There are few black sheep /read: a few good ones/ among them like ozma 5 and 7, but they are kinda hard to find.

As for the AD700 vs A700 - depends on what you like:
the AD700s are more neutral, offer great sound for the buck,
the A700 offer more bass, which is good if you like to listen to certain music as well.
For gaming the AD is better suited as long as you usually prefer the SFX to the BGM

Also, the headset is as good as your sound card.
Your on-board sound is usually very limited, sound is too plain and there is a bit of echo. Well it kinda sounds like the speakers are under a pot or something. The dedicated sound card feels like you are sitting inside the game - the sound is rich, precise and you can hear anything clearer and better...

Thus the link I put in the first place - since you got your budget and you choose a great pair of headphones, you should look on that forum post in the link and find yourself the appropriate sound card /If you already don't have one/. The forum post /through dated a bit/ has a great selection of the best bang-for-the-buck hardware sorted by your needs.