[devilmonk]

under Sound > Playback > Headphone > Advanced, should I change the default format? currently it's on 2 channel, 16 bit, 44100 Hz (CD Quality). I have soundmagic hp150.

 

[PurpleAngel]

  under Sound > Playback > Headphone > Advanced, should I change the default format? currently it's on 2 channel, 16 bit, 44100 Hz (CD Quality). I have Sound Magic hp150.

 
16-bit/44.1 is fine for music CDs and most FLAC audio files.
Specialty places like HDtracks sells music higher then 16-bit/44.1
(My new Pink Floyd Blu-ray comes with music audio files in 24-bit/96K)
I believe modern DVD audio is 24-bit/48K max.
Modern Blu-ray audio I believe takes advantage above 24-Bit/48K (like 24/96 or 24/192).
 
What headphones you use really does not have factor in what you set the digital audio setting for.