No sound from 7.1 Audio

I just bought a set of Razer Kraken Ulitimate USB Headphones. I installed the drivers and synapse software, walked through the whole guide on verifying my install, typed in my code. But every time I set up my 7.1 surround sound, I get no sound out of it. I tried switching the sound input to the headset, and I do get sound out of it, although though it's really bad. It sounds like I'm listening thru an old 90's phone. I'm going to try a clean reinstall again, but this will be my third attempt. I don't own another computer to diagnose the problem. Any other ideas?