psychoacoustics

The other day I was reading through some articles on different aspects of psychoacoustics (I think this stuff is fascinating), and I came across a very interesting concept. The idea of 'stereo' is that the music is supposed to psychologically seem to have sounds coming from different locations, and sometimes differing distances. In my experience, it is pretty difficult to achieve a stereo setup that accurately recreates the effect. I ran across this website where they talk about an 'eight-fold space' music listening recording setup and listening environment. Basically, you would record each instrument onto its own track, and play it back using 8 identical full range speakers and 8 identical amplifiers, one on each wall and one in each corner of a square room. This is much different from what most people think of when they talk about "surround sound."

Here is the website:
http://timbreproductions.com/pages/mental_psychoacoustics.html
Their website is terrible, but the concept is really neat.

One question, is if this concept is known as something other than "eight-fold" recording.
Also, I was wondering if you knew of any good books/websites with in depth information about psychoacoustics