I see a potentially significant oversight with Windows Sonic's "Virtualize to 7.1 surround sound" implementation.
When using Windows Sonic with the "Turn on Virtual 7.1 surround sound" option, the windows audio control panel still configures and reports the audio device as having plain old stereo channels. The problem is many games and applications configure their audio output based on this windows control panel setting. Thus, even with "virtualize to 7.1 surround option" ticked, the game or application still sees the device as a stereo device and outputs a stereo feed.
Thus, unless there is an in-game option to manually select a speaker configuration, all games will be outputting to stereo, leaving Windows Sonic nothing to virtualize.
Instead, the windows control panel should be reporting the device as having 7.1 audio channels. Then, the game or application will output 7.1 channel audio that can be successfully virtualized and downmixed to headphones.
I'd appreciate any insight or clarification, but as far as I can tell even with the 7.1 virtual sound option ticked, most applications see a stereo device as per the windows control panel, output stereo, and in turn leave Windows Sonic nothing to virtualize. If this is indeed the case, it is seriously undercutting much of Windows Sonic's potential to work with existing applications.