I'm interested in this as well! I know someone made a binaural encoder app - just not sure how to do it in Audulus. I'm sure it has something to do with managing delay times and phase relationships, right?
correct! and the key (I'm no DSP mathematician but...) if I understand correctly is the Head-Related Transform Formula (HRTF) which is like a grid of points in a (roughly) spherical space, blocked for the torso etc - I will drill down for the last really good reads I found on the topic once I'm home later - cheers! DS
I doubt this will help you get any closer to encoding it, but these mics shown at NAMM this year are a pretty cool idea. *edited with actual video URL ha!*