Hey guys, thanks for the input:
I have considered the Z4 (though they are out of stock most places), but am now sold on the headphone idea. The reason being that I often play games at night or early morning while my wife is in bed and can't turn up the volume very high anyway - so it is a win-win with headphones. (I'm not playing them on the sly, btw, I get my games and she gets to watch reality TV, and never the twain shall meet!)
I'm not playing games that use a mic - I play Oblivion and NWN2 mostly, perhaps will pick up Dragon Age soon (love RPGs), but never got into WoW because I don't have enough time to play regularly and make a monthly subscription worth it. I used to play CS-source, but it got too addictive for me.
I still like the mic idea, as we could use it with a webcam to talk to our families and get better sound than my old Logitech webcam can provide.
I have an X-Fi extreme gamer, so I don't need the sound card. The PC350 is $180 on newegg, a bit much, but yeah I could search around for a cheaper set. Googer, do you have an opinion on the PC161 vs the 151 and 131, which are cheaper but seem to have decent reviews?