Dr Edgar Choueiri at Princeton University is similarly developing 3d audio presentations over two audio channels. [1]

He has initially targeted audiophiles [2], and he has teamed with David Chesky (HDtracks.com) on a number of "binaural+" recordings. [3]

His video lecture and demo is nicely done (demo at 6 minute mark). [4]

[1] http://www.princeton.edu/3D3A/PureStereo/Pure_Stereo.html [2] http://www.stereophile.com/content/bacch-sp-3d-sound-experie... [3] http://www.hdtracks.com/binaural [4] https://www.youtube.com/watch?v=SQmQD27uCt0