I use the Xbox 360 Headphones for Audio.
I use my own headphones because they're of much higher quality than either of your options.
I use my home theatre speakers.
I use quantum phase wave length shifters
Home theater system
Headphones. Buying some new ones soon after I sell my Astro A40's. All console headphones are pretty much garbage that sound like tin cans. Time to buy a decent pair.
[quote user="HC HALO 3 RECON"]
I Use x11's
I only have a LCD monitor and it has no speakers so I use my gamecom wireless headset for my sound. They do the job and have excellent sound.
Turtle Beach for online play. Surround Sound down stairs. 2.1 Logitech system for local playing in the office.