those settings show that you likely have things set up for speakers 7.1. in other words, using 4 ports on the back. speaker 7.1 (actual) is different than headphone 7.1 (virtual). you may need to go into your actual realtech settings and see if there are options to change the default config on the rear to headphones not speakers and if 7.1 surround is an option there. i cant say i use realtech drivers myself so i'm only noting something you could look for.
why you dont hear sound is because it is playing out of different ports (for speakers) that you arent using for headphones.
razer virtual surround may be able to work for you on the rear jacks as well but i dont use it myself.