The folk at Spitfire Audio have this rather worth listening to YouTube = you need speakers AND headphones to watch the video. Some amazingly realistic clips and a guy with only one working ear explaining how he can perceive locational info from sounds!
Great video! Thanks for the link, Paul.
I've read quite a bit about binaural - but the bit in the clip with my in ears in really did go behind me. I tried it a couple of times with eyes open and closed and when the lady asks him to do it again, it was just like being in the room. Speakers didn't work - exactly as the books say, but this is the first time I've heard a binaural example that really showed it off. That Neumann mic works brilliantly.
It's worth checking his videos out - they did quite a few when they were building their studios!