Check out this audio clip using a pair of headphones! In this clip binaural sound is used to create the illusion of someone cutting your hair, it’s really lifelike!
Imagine what this can do to music, we think it should be used more often! One example of some sort of 3D sound is called Dolby Mobile, this technique is demonstrated in the video below.
Other examples of the use of binaural sound in music can be found on Pink Floyd’s album “The Final Cut”. The technique itself is pretty old and simple and just uses 2 microphones placed on the ears of a fake head. So why not use it more?
Here you can find some more info about binaural sound and recording.