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Compensated amplitude panning (CAP) is a method for producing audio images in 3 dimensions using loudspeakers, which takes into account the position and orientation of the listener's head, measured using a tracking system. A key feature of this approach is that two loudspeakers are sufficient, lending it to many applications where surrounding loudspeakers are not possible or practical. In the low frequency region up to ~1000 Hz the Inter-aural Time Difference (ITD) and Inter-aural Level Difference (ILD) cues are reproduced accurately. At higher frequencies energy panning or cross-talk cancellation methods can be used. This demonstration is for a stereo-CAP system with energy panning. Improvements in the reproduction process and the tracking have led to greatly enhanced imaging. The basic principles will first be explained and each attendee will have the opportunity to try the system out.