There have been several commercial announcements and even a few released products which claim to offer "surround sound" via headphones. And there are several amateur, home-brew projects to do this as well. For example:
This is possible because of the way in which our brain actually processes positional information from audio. Each of our ears hears the pressure waves that impact it. They are not at all directional by themselves and just get raw pressure data. This information is processed by our brain to determine position based on patterns we develop based on the way ...
Soundfield UPM-1. Lower budget solution Waves UM 225 or you could try Iosono Anymix. They all work best with stems though. Try the demos and see what works best for you. None of these are a "click a button and done product" though, then again, nothing in this field of work is, or rather should be.
Do you have stereo output? If so, just manipulate the volumes in the left and right channel differently.
For example when:
facing north: both channel levels at 100%
facing east: left channel 60%, right channel 40%
facing south: both 20%
facing west: left channel 40%, right channel 60%
The user turns towards the loudest sound, and thereby should find north.
Basically, what the festival is saying is that for play back that is using a high end professional cinema distribution, they need to use particular speaker configurations. For your film, they are just using a standard bluray playback, so you can just burn a bluray disk with it and be fine.
The exact way your sound will behave depends on how they have ...
It will play but probably won't sound as good as if it was mixed in 5.1 or 7.1. Because it's only the 2 speakers the sound will "pull" to the side for people sitting far off center. Other issues maybe be that it wasn't mixed with an X-curve and in a large room calibrated to theater levels.
Your mix will most likely just come out the L and R speakers, ...