It isn't that hard at all to record music this way - it is called binaural recording, and has been around for a long time (the virtual haircut must be nearly 10 years old itself). there are any number of methods for this type of recording, the most reliable being the use of a dummy head.
The trouble is, recordings like this do not really mesh well with a studio environment, where you mic each instrument separately. The method works wonders for live recordings, however - the Milwaukee symphony had a guy doing binaural recordings for some time. We actually used to have a thread somewhere called the "free binaural recordings links" thread, a quick search should bring you to it :)