Part 1 of this paper describes a system topology for the creation of auditory scenes � a multichannel, virtual acoustic environment using a MIDI-controlled collection of parallel hardware-based DSP devices. This paper describes Version 2 of this system, which includes custom DSP algorithms implemented in real-time software on an Macintosh computer. With an intuitive graphical user interface, Version 2 allows smooth dynamic changes in both the sound source location and the spatial characteristics of the created synthetic auditory space. The system topology, implementation, and usage are described.