Does Dolby Headphone technology create “surround” from stereo programs?
No, Dolby Headphone technology does not synthesize quasi-surround from conventional stereo programs. Think of Dolby Headphone technology simply as the virtual equivalent of a five-speaker system for multichannel programs, and as a two-speaker system for stereo material. Just as with your actual speakers, what you hear depends upon how the material was recorded, and what kind of surround decoding your playback system incorporates (if any).