[Ayreonaut]

I've tried the Dolby Headphone software plugin on my PC as well as quite a few other DSPs to the same effect.

I find that like almost all DSPs they screw up the tone and add reverb among other things. At first it sounds impressive. But it gets wearisome and I always go back to pure stereo listening.

A little simple crossfeed is nice for older mixes that put an instrument or voice entirely in one channel or the other. I usually turn the crossfeed off for most recordings though.

They are rare, but binaural recordings are pretty neat. The engineer uses a dummy head with a mic in each ear. When played back on headphones the technique can yield a very convincing sense of environment. The DSPs like Dolby Headphone cannot convicingly replicate a real binaural recording. Yet.

All of the above comments are mainly about music. Crossfeed or Dolby Headphone might be more helpful when watching movies or TV. The soundstage from regular stereo headphone listening is in your head and very disjointed from the screen in front of you. My Denon has a DSP called Virtual that effectively moves the soundstage somewhat forward. It doesn't marry the soundtrack to the screen but it helps a little. Quality suffers like I said before, but it may be the lesser of two evils for HT with headphone use. Personal preference will prevail here. I usually end up going back to stereo because tone is important to me and reverb drives me nuts.

Not all headphones image equally well. The AKG K701s paint a pretty expansive picture in the head compared to most headphones.