I've been looking around and i have noticed that some headsets come with a dedicated soundcard built in.
Now would it be better to have a say $100 dollar usb headset or a $50 headset and $50 soundcard? Thanks!
the only way i would suggest a gaming headset is if you want something simple with an attached microphone.
personally you will not catch me dead with one on. i use set of studio headphones (ath-m50s) directly attached my receiver or 3.5mm jack on my laptop. the quality of sound difference is noticible. the low 35ohm (i think) impedence is easily driven by your soundcard without an amp.
did you have an integrated soundcard? if it is semi-decent you might be able to get a $100 headset instead. the one is about $30 more if you get a decent online-price for it. i paid more since i bought it in a retail store (guitarcenter).
if you would need a soundcard...there are $50 speakers out there but its questionable which ones would be worthwhile over a usb headset. both would be lower grade compared to other options on the market. you might want to look into sennheiser or perhaps a low grade audiotechnica but avoid the extra bass sony model as it is junk.
if you want an all-in-one type solution (headset and mic) then go ahead and look at those usb headsets. however realize that once you start getting up around $100 there are far better things available.
even a low end pair of studio headphones will sound much better than mid to high end usb powered headsets. i just mentioned the model i personally use. if you also needed a mic you would have to use a clip on or desk mic with this though.
as far as using the integrated soundcard, this is because of your budget. the headset i recommended is about $100 if you get a very good deal on it (i paid $180 retail). also if you have a good integrated soundcard you might not need a slot card. however if you do not have integrated or want a soundcard then you do have the option to get a sub $30 card and pick a lower end of headphones.
i was listing my opinion on what i would do. since you are a different person with your own opinion just look at what i said and see if it is right for you. some people prefer the ease of use with a headset (with mic), some people like the 7.1 style headsets (with mic) yet others like to use better equipment. i'm just giving you ideas on what you could do with that money.