Could also be compression that is going on in the data path.  Is there a
control panel app for your soundcard?  Some of them will do horrible
things to "enhance" the sound by default that do nothing but muddy up
the sound.  I seem to recall creative doing this at one point with their
sound cards.  Good news is you've narrowed the problem down.

Otherwise, yes, an outboard USB dac with a build in headphone amp would
serve you well.


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