I remember when I went to disneyworld (pretty sure it was DW) years back and they had this building that was some theater with a Drew Carry feature, you put on these also 80's style headphones with yellow foam covers and after 5min the lights/screen go out in the theater and you can only hear. Not sure if they used binaural recording or WHAT but it sounded completely surround, they had a bunch of hokey positioning sound effects and stuff, but the effect was really good.
it's really a shame nobody has taken binaural recording seriously. considering the amount of people who use headphones to listen to music, it would make plenty of sense. i also don't understand why someone hasn't come up with an algorithm to simulate binaural sound from stereo, the only thing ive seen even close to it is the VRM box, but that adds in the tonal signatures of various studio monitors, and therefore changes the signature of your headphones.