I've had this headset for a few months now, and it's been pretty good. The software allows you to set up how many channels you want to be active at once, from stereo up to 5.1 and then 7.1 (simulated.) I found the stereo quality to be very good, with good ranges for all types of music. For gaming, the surround sound was good too, but it still didn't give the surround feeling that proper 5.1 speakers give. (I used to have some speakers setup in a 1m radius, and the immersion was great for games like Amnesia, but that's another product.)
One gripe I had was that the microphone quality was bad. It always sounded quite muffled and distant, and nothing I could within skype or mumble (another VOIP program) would make it sound better.
I have looked after the headset carefully over the few months I've had it, but just the other day something seems to have gone wrong in the cable where it leaves headset. If it's wiggled you lose sound from one half of the headset. Because of this rather rapid fault and the fact the mic was bad, I'll be investing in a more expensive pair of headphones if I decide to choose a surround sound set. I believe it's just another case of "you get what you pay for", and 40 quid was pretty cheap for a surround sound headset at the time.