Using USB X-Fi as DAC. Not ideal but due to budget constraint it is best for now. Read from alot of forums and from trials and errors, decided to use only Vista drivers because sound is much better then manufacturer drivers.
Creative CD installation comes with alot of sound effects and these are not installed because they are not needed.
The aim is to get bit perfect to the DAC and from DAC to analogue speakers.
Next upgrade would be getting a Arcam rDAC but it cost more than approximately 8 times of X-fi.Am not sure whether the performance and SQ will improve by 8 folds.
Still thinking.
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