Most of us have become accustomed to the sound of compressed audio (mp3, wma, aac), but Creative wants to remind us of what we're missing. This article from O'Reilly illustrates how the Xmod is a very flexible device for enhancing and "surroundizing" audio in home, car, and headphones.
"Smaller than a computer mouse, the Creative Xmod packs some surprising sonic powers inside its sleek white shell. The Xmod is a combination audio interface and enhancer. When you plug it into your computer's USB port, the Xmod becomes an external soundcard, taking over the audio input and output duties and adding a handy volume knob."