This is freaking cool!!! Its a demonstration of holophonic sound.
Firstly you need to set yourself up for it.
1. You _need_ to be using a set of headphones (preferably in a quiet room).
2. If you have one of those sound cards that does surround sound etc, disable that. You just want 2 channel sound. Nothing more. No effects, no 3d virtualization etc. Just plain jane stereo sound. If your soundcard has a "headphones" mode, put it into that.
3. Turn the volume up so its loud. Loud enough to drown out any ambient sound in the room you're in. The sound demo contains people talking and other audio, so you want it loud enough to be like its a real person talking beside you.
4. Closing your eyes during the demo is optional.
NOTE: This is not one of those "scare the crap out of you" things. I hate them aswell. This is a real audio demonstration.