How can I convert stereo audio to binaural?

view full story

http://askubuntu.com – I have looked around and I came across (b2sb) and well its not clear how to install it. It also mentions there that it is used in MPlayer but I can't see how. So how do I go about installing it? As a further extension, I'd like to have virtual 5.1 on my headphones. I know Dolby Headphone does this and there's a Foobar2000 plugin in Windows but that applies to audio only. There is the HRTF implementation of MPlayer but there's lots of crackles and pops when its enabled. (HowTos)