That little blue adapter? Naaaa...wouldn't even bother trying it.
I would buy that if my audio jacks are broken...
If you want simulated 5.1 surround with headsets, try the Xonar DG (google it to find stores that sell it). It's a sound card that support dolby headphone, and dolby headphone is a simulated 5.1 surround. Here's a video showing it's ability to process the sound into virtual surround:http://www.youtube.com/watch?v=gkVSgxvDvcM
Pretty damn good IMO.