Hey Pitch Black!
Binaural audio is a fantastic element to put into games. I'm still learning about it myself and researching plugins/production techniques to create binaural sound design elements. Unfortunately the mic to record that type of signal is $600...one day.
Anyways, I'll keep my eye on this thread and will post anything I find to help answer this question and any other useful information anyone else may be looking for.
If anyone out there is more experienced than we are please help us out! :)
~Sean