Recent experiments show that it is possible to create a virtual sound field within which our aural perception is as accurate in locating a source as in the real sound field. Ambisonics and wavefield synthesis are the two primary methods, where sound may be located in 'real' 3-D space, rather than relying on the phantom images of conventional multi-channel panning and surround systems. Such systems already occupy significant commercial and research areas but require unrealistic loudspeaker configurations for everyday use. The aims of this project are twofold: (1) To investigate the implications of 3-D sound on musical composition strategies related to experimental electroacoustic music, spatial installations and sound-art. (2) To design a hybrid approach to spatialisation that avoids unrealistic loudspeaker configurations by drawing on psychoacoustics, perception and cognition. This area involves two primary points of departure: the role of sound identity and sound allusion within a spatial frame, and sound-spatial enhancement using unconventional recording and transformation techniques.