OK.
So, here's some thoughts/tips. Bear in mind all this is very subjective and what I like or prefer might not be the same what someone else likes or prefers. My only real "qualification" is that I've been tinkering with virtual surround solutions for a very long time now and I've heard most of them.
First, ignore the Windows stuff like Windows Sonic or Dolby Atmos. It just doesn't work correctly with headphones for virtual surround - it always forces two channel audio on input, and you always want full 7.1 if possible for much better audio positioning in games.
I'm not familiar with your exact soundcard, so I can't be sure how do its drivers and its control panel behave exactly, but generally, what you want if at all possible is to set the Windows speaker configuration (in Win10, it's right click on the Windows volume icon in system tray, Open sound settings, scroll down to Related settings, click Sound control panel, in Playback devices find your soundcard device, right click, select Configure speakers) set to 7.1, check all the optional speakers if asked to and also set all to full range. That's the ideal config for virtual surround on Windows side. Now just set your sound card (in its own control panel) to output to headphones (and hope it doesn't force the Windows settings back from 7.1 to headphones or stereo, which is what many soundcards do nowadays, ruining the virtual surround experience or rather making it a lot more complicated).
This should set everything so that games will output 7.1 sound which will then be processed by the soundcard into proper virtual surround. You obviously need to enable the SBX option and possibly tweak its settings to your liking - you're quite lucky that your soundcard is a true 7.1 device, a rare thing for a Creative soundcard these days, which gives much better results than their 5.1 cards regarding virtual surround.
In games, if presented with an option (like in Raceroom), just set audio to 7.1 (not to headphones). If not presented with an option, the game is almost certainly autodetecting your config according to the speaker configuration you have set in Windows and should hopefully output 5.1 or 7.1 automatically.
Now, the tricky thing is that virtual surround changes the sound and usually does make it more "hollow". That's something you can do little about, it's an inherent part of virtual surround (it needs to create a bit of "space" for the sound to not be too directional as that feels quite unnatural. The tricky part is that every virtual surround solution uses a slightly different approximation of how it all sounds, based on different models of virtual heads/ears it uses (called HRTF, head-related transfer function). And because we all have differently sized and shaped heads, a solution that works perfectly for one person might sound completely off for someone else. SBX allows you to tweak this a bit with its settings slider (which also does other things, though, like moving the virtual speakers around to an extent), but generally, you either have to get used to it (which is true of pretty much any virtual surround solution in my experience, your brain kinda gets accustomed to it after a while), or you have to look for a different virtual surround solution. There are thankfully some free solutions to that nowadays. Personally, I'm not that big on SBX, I find it a bit too sterile and directional, I prefer Dolby Headphone, but I could live with SBX, at least in its 7.1 version (the 5.1 is a lot worse for me).
So, yeah, maybe try to do what I described here and see how you like it, and give it at least a few hours to get used to it. Again, it won't sound exactly like pure stereo, because it's not supposed to, but I'd say SBX actually is pretty good with not adding too much reverb and preserving the original "tone" of the sound. There are certainly far worse virtual surround solutions in this regard.