Richter Di
1000+ Head-Fier
There also was another very similar product awhile ago called the "Power Acoustics HP-1 Headphone Processor". It was designed for Stax headphones & they were planning to release one for general headphones, but they have released no info since, as far as I'm aware.
If you go to the http://www.pawel-acoustics.ch/products.html website, you can find this review in a German Hifi magazine: http://www.pawel-acoustics.ch/pdf/image_hifi_0202.pdf
They tested it with a Stax SRS 007 but the review wasn‘t typical positive. Yes the sound sources separated with the „Binaural“ but in the head. So the singer was in the front of the head while other instruments in the back. There also is no headtracking involved.