There always seems to be confusion about what a binaural recording is. Put simply, the person who records the music doesn't use standard microphones. Instead, they use a model of a human head (there are variations on this) with microphones inside the ears.
Thus, the recording is just like how a human hears it. Now, there are a lot of variables, different dummy heads, techniques, etc., but that's the short of it. Also, you cannot convert a regularly recorded piece to binaural. You just can't do it.
As for gear, you can get the effect with any headphone, open or closed. I've listened on the AKG K-1000 with the earspeakers canted out (which is as open as you can get with headphones) and the effect is still there. Very much so.
The best binaural piece out there is this:
HECTOR BERLIOZ: Symphonie fantastique; Love Scene from Romeo et Juliette - Cincinnati Sym. Orch./Paavo Jarvi - Telarc SACD-60578
Unfortunately, you need some gear to access it. This is a SACD and you need a multichannel SACD player to get the binaural track. When they recorded this, they stuck a Neumann head (one of the best) up in the balcony and used it to record the rear channels. So if you put this disc on and jack your headphone amp into channels 4 and 5 on your SACD player, you get binaural bliss. On a nice DSD SACD, no less. This is the best recording I've heard. You are there and it's creepily real.
Also, the Pearl Jam CD isn't entirely binaural. I think there are a few binaural effects, but the album was recorded traditionally. Still a good album, though.