a real surround sound set is noticibly better than surround sound headphones or simulated surround sound headphones. even on cheap logitech models the difference is there.
as far as the best quality headset/headphone solution? buying a pair of studio headphones and a seperate clip on mic. the sound quality of a high quality pair of headphones can not be matched by gaming surround sound headsets.
as far as a solution that is fairly cheap and is an all in one solution? just pick a gaming headset up which you like. pretty much what jc98 stated. just realize what you are buying before you do. they will work and are convenient and easy to use but that is all they give you.