...and I came across this clip called the "Virtual Barber". If you haven't heard of it, it's just an audio recording demonstrating holophonic sound. You need to have headphones for this to work right. If you close your eyes it really sounds like these are real things going on around you!! It freaked me out a little, especially at the end.
Just remember to keep your eyes closed. It's much better with them closed.
Haha yeah, its called the Dummy Head recording method, where they place a head with 2 microphones filled with some kind of liquid to mimick the real head and then simply play a track with speakers around, and when you play it back using headphones, the sound litterally feels like it would in a surround theatre: