Does Dolby Headphone technology work with processors that do create a surround effect?
Yes. Just like a multichannel speaker system, Dolby Headphone technology can be used in conjunction with processors that are intended to give a surround effect on stereo material. For example, Dolby Surround Pro Logic II, the latest Dolby multichannel matrix decoder, provides a wider, more enveloping soundfield on many conventional stereo recordings, which Dolby Headphone technology (in its five-channel mode) will reproduce to great effect.