As mentioned above, while acceptable, Wonderhorse's audio quality is nowhere near as good as current versions of RealServer. Their player software is free, but it only works with Internet Explorer 5.5. So, you want good, comfortable phones with a deep foam cushion, not those tiny earbud things that fit in your ears and make you crazy after 5 minutes. We use Labtec Stereo Headphones, model LT-825. They're the same thing all our computer labs use for listening to audio so students don't disturb the folks at the computer next to them.
Microphones are the heart of any audio setup.
No matter how good your programming is, a cheap mic will make you sound horrible. However, good quality doesn't have to mean the best, and it doesn't have to mean big bucks. Of course, you can pay more, but we're trying to do this on the cheap. Desk stands tend to pick up every thump, whack, and bump whenever anyone puts something down on the desk or even bumps into it. But better stands mean more money, and we've done a pretty good job of teaching everyone to resist the temptation to play drums on the desktop with their hands no matter how good the music is.