This paper describes new signal processing algorithms, implemented on an advanced DSP engine, for simulating more accurate sound images via 2-speaker stereo than has hitherto been possible. The new algorithms simulate both subjective distance from the listener and a realistic angular size for sound sources panned in the stereo image. We describe both the cues and psychoacoustic requirements to create such realistic stereo images, and detail some of the mathematical theory involved in the design of such algorithms.
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