diff --git a/Aquaria/Avatar.cpp b/Aquaria/Avatar.cpp
index 6e74540..6bf4ad7 100644
--- a/Aquaria/Avatar.cpp
+++ b/Aquaria/Avatar.cpp
@@ -3466,7 +3466,7 @@ void Avatar::lockToWallCommon()
 	dsq->spawnParticleEffect("LockToWall", position);
 	stopBurst();
 	stopRoll();
-	core->sound->playSfx("LockToWall", 1.0, 0);//, (1000+rand()%100)/1000.0f);
+	core->sound->playSfx("LockToWall", 1.0);
 	//bursting = false;
 	this->burst = 1;
 	//lastLockToWallPos = position;
diff --git a/Aquaria/DSQ.cpp b/Aquaria/DSQ.cpp
index ac8f254..1ea2ab6 100644
--- a/Aquaria/DSQ.cpp
+++ b/Aquaria/DSQ.cpp
@@ -2293,58 +2293,22 @@ void DSQ::playMenuSelectSfx()
 	core->sound->playSfx("MenuSelect");
 }
 
-PlaySfx DSQ::calcPositionalSfx(const Vector &position, float maxdist)
+void DSQ::playPositionalSfx(const std::string &name, const Vector &position, float f, float fadeOut, SoundHolder *holder)
 {
 	PlaySfx sfx;
-	sfx.vol = 0;
-	if (dsq->game && dsq->game->avatar)
-	{
-		Vector diff = position - dsq->game->avatar->position;
-
-		// Aspect-ratio-adjustment:
-		// Just multiplying the cut-off distance with aspect increases it too much on widescreen,
-		// so only a part of it is aspect-corrected to make it sound better.
-		// Aspect is most likely >= 5/4 here, which results in a higher value than
-		// the default of 1024; this is intended. -- FG
-		if (maxdist <= 0)
-			maxdist = 724 + (300 * aspect);
-
-		float dist = diff.getLength2D();
-		if (dist < maxdist)
-		{
-			sfx.vol = 1.0f - (dist / maxdist);
-			sfx.pan = (diff.x / maxdist) * 2.0f;
-			if (sfx.pan < -1)
-				sfx.pan = -1;
-			if (sfx.pan > 1)
-				sfx.pan = 1;
-		}
-	}
-	return sfx;
-}
-
-void DSQ::playPositionalSfx(const std::string &name, const Vector &position, float f, float fadeOut)
-{
-	PlaySfx sfx = calcPositionalSfx(position);
-
-	// FIXME: Right now, positional sound effects never update their relative position to the
-	// listener, which means that if they are spawned too far away to be audible, it is not possible
-	// that they ever get audible at all. Additionally, the current scripting API only provides
-	// functions to fade sounds OUT, not to set their volume arbitrarily.
-	// Because audio thread creation is costly, drop sounds that can not be heard.
-	// This needs to be removed once proper audio source/listener positioning is implemented,
-	// or the scripting interface gets additional functions to mess with sound. -- FG
-	if (sfx.vol <= 0)
-		return;
-
 	sfx.freq = f;
 	sfx.name = name;
+	sfx.relative = false;
+	sfx.x = position.x;
+	sfx.y = position.y;
 
 	void *c = sound->playSfx(sfx);
+
 	if (fadeOut != 0)
-	{
 		sound->fadeSfx(c, SFT_OUT, fadeOut);
-	}
+
+	if (holder)
+		holder->linkSound(c);
 }
 
 void DSQ::shutdown()
diff --git a/Aquaria/DSQ.h b/Aquaria/DSQ.h
index 0360ca3..ed000ff 100644
--- a/Aquaria/DSQ.h
+++ b/Aquaria/DSQ.h
@@ -1426,8 +1426,7 @@ public:
 	bool voiceOversEnabled;
 	int recentSaveSlot;
 
-	PlaySfx calcPositionalSfx(const Vector &position, float maxdist = 0);
-	void playPositionalSfx(const std::string &name, const Vector &position, float freq=1.0f, float fadeOut=0);
+	void playPositionalSfx(const std::string &name, const Vector &position, float freq=1.0f, float fadeOut=0, SoundHolder *holder = 0);
 
 	void playMenuSelectSfx();
 
diff --git a/Aquaria/Entity.cpp b/Aquaria/Entity.cpp
index fda5d24..9bec306 100644
--- a/Aquaria/Entity.cpp
+++ b/Aquaria/Entity.cpp
@@ -284,6 +284,8 @@ Entity::Entity()
 	setDamageTarget(DT_AVATAR_BUBBLE, false);
 	setDamageTarget(DT_AVATAR_SEED, false);
 
+	stopSoundsOnDeath = false;
+
 
 	//debugLog("End Entity::Entity()");
 }
@@ -573,6 +575,10 @@ void Entity::watchEntity(Entity *e)
 
 void Entity::destroy()
 {
+	if (stopSoundsOnDeath)
+		this->stopAllSounds();
+	this->unlinkAllSounds();
+
 	/*
 	if (hair)
 	{
@@ -1231,6 +1237,8 @@ void Entity::update(float dt)
 		position = backupPos;
 	if (vel.isNan())
 		vel = backupVel;
+
+	updateSoundPosition();
 }
 
 void Entity::postUpdate(float dt)
@@ -2239,7 +2247,8 @@ void Entity::songNoteDone(int note, float len)
 
 void Entity::sound(const std::string &sound, float freq, float fadeOut)
 {
-	dsq->playPositionalSfx(sound, position, freq, fadeOut);
+	dsq->playPositionalSfx(sound, position, freq, fadeOut, this);
+	updateSoundPosition();
 }
 
 Vector Entity::getEnergyShotTargetPosition()
@@ -3139,3 +3148,8 @@ bool Entity::isEntityInside()
 	}
 	return false;
 }
+
+void Entity::updateSoundPosition()
+{
+	SoundHolder::updateSoundPosition(position.x + offset.x, position.y + offset.y);
+}
diff --git a/Aquaria/Entity.h b/Aquaria/Entity.h
index 71bcf70..a9ae2df 100644
--- a/Aquaria/Entity.h
+++ b/Aquaria/Entity.h
@@ -196,7 +196,7 @@ enum BounceType
 	BOUNCE_REAL		= 1
 };
 
-class Entity : public Quad, public StateMachine
+class Entity : public Quad, public StateMachine, public SoundHolder
 {
 public:
 	Entity();
@@ -276,6 +276,7 @@ public:
 
 	void popBubble();
 	void sound(const std::string &sound, float freq=1, float fadeOut=0);
+	void setStopSoundsOnDeath(bool stop) { stopSoundsOnDeath = stop; }
 
 	void freeze(float time);
 
@@ -492,6 +493,8 @@ public:
 
 	bool isEntityInside();
 
+	void updateSoundPosition();
+
 protected:
 	bool calledEntityDied;
 	Path *waterBubble;
@@ -602,6 +605,8 @@ private:
 	int maxSpeed;
 	int oldMaxSpeed;
 
+	bool stopSoundsOnDeath;
+
 };
 
 #endif
diff --git a/Aquaria/Game.cpp b/Aquaria/Game.cpp
index 69066a1..066d599 100644
--- a/Aquaria/Game.cpp
+++ b/Aquaria/Game.cpp
@@ -8134,13 +8134,13 @@ void Game::playBurstSound(bool wallJump)
 	int freqBase = 950;
 	if (wallJump)
 		freqBase += 100;
-	sound->playSfx("Burst", 1, 0);//, (freqBase+rand()%25)/1000.0f);
+	sound->playSfx("Burst", 1);
 	if (chance(50))
 	{
 		switch (dsq->continuity.form)
 		{
 		case FORM_BEAST:
-			sound->playSfx("BeastBurst", (128+rand()%64)/256.0f, 0);//, (freqBase+rand()%25)/1000.0f);
+			sound->playSfx("BeastBurst", (128+rand()%64)/256.0f);
 		break;
 		}
 	}
diff --git a/Aquaria/ScriptInterface.cpp b/Aquaria/ScriptInterface.cpp
index 6b57e9c..b795311 100644
--- a/Aquaria/ScriptInterface.cpp
+++ b/Aquaria/ScriptInterface.cpp
@@ -2763,28 +2763,36 @@ luaFunc(entity_playSfx)
 	void *h = NULL;
 	if (e && !dsq->isSkippingCutscene())
 	{
-		PlaySfx sfx = dsq->calcPositionalSfx(e->position, lua_tonumber(L, 7));
+		PlaySfx sfx;
 		sfx.name = getString(L, 2);
 		sfx.freq = lua_tonumber(L, 3);
-		float vol = lua_tonumber(L, 4);
+		sfx.vol = lua_tonumber(L, 4);
 		sfx.loops = lua_tonumber(L, 5);
+		
 		float fadeOut = lua_tonumber(L, 6);
-		if(vol > 0)
-			sfx.vol *= vol;
-
-		// FIXME: See comment in DSQ::playPositionalSfx() -- FG
-		if (sfx.vol <= 0)
-			luaReturnPtr(NULL);
+		sfx.maxdist = lua_tonumber(L, 7);
+		sfx.relative = false;
 
 		h = core->sound->playSfx(sfx);
 		if (fadeOut != 0)
 		{
 			sound->fadeSfx(h, SFT_OUT, fadeOut);
 		}
+
+		e->linkSound(h);
+		e->updateSoundPosition();
 	}
 	luaReturnPtr(h);
 }
 
+luaFunc(entity_setStopSoundsOnDeath)
+{
+	Entity *e = entity(L);
+	if (e)
+		e->setStopSoundsOnDeath(getBool(L, 2));
+	luaReturnNil();
+}
+
 luaFunc(entity_setSpiritFreeze)
 {
 	Entity *e = entity(L);
@@ -5927,32 +5935,20 @@ luaFunc(emote)
 
 luaFunc(playSfx)
 {
-	float freq = lua_tonumber(L, 2);
-	float vol = lua_tonumber(L, 3);
-	int loops = lua_tointeger(L, 4);
-	if (vol <= 0)
-		vol = 1;
-
 	PlaySfx sfx;
-
-	if (lua_isnumber(L, 5) && lua_isnumber(L, 6))
-	{
-		const Vector pos(lua_tonumber(L, 5), lua_tonumber(L, 6));
-		sfx = dsq->calcPositionalSfx(pos, lua_tonumber(L, 7));
-		sfx.vol *= vol;
-	}
-	else
-	{
-		sfx.vol = vol;
-	}
-
-	// FIXME: See comment in DSQ::playPositionalSfx() -- FG
-	if (sfx.vol <= 0)
-		luaReturnPtr(NULL);
-
 	sfx.name = getString(L, 1);
-	sfx.freq = freq;
-	sfx.loops = loops;
+	sfx.freq = lua_tonumber(L, 2);
+	sfx.vol = lua_tonumber(L, 3);
+	if (sfx.vol <= 0)
+		sfx.vol = 1;
+	sfx.loops = lua_tointeger(L, 4);
+	sfx.x = lua_tonumber(L, 5);
+	sfx.y =  lua_tonumber(L, 6);
+	sfx.maxdist = lua_tonumber(L, 7);
+	if(lua_isnoneornil(L, 8))
+		sfx.relative = (sfx.x == 0 && sfx.y == 0);
+	else
+		sfx.relative = getBool(L, 8);
 
 	void *handle = NULL;
 
diff --git a/BBGE/Core.cpp b/BBGE/Core.cpp
index 5593056..09acce9 100644
--- a/BBGE/Core.cpp
+++ b/BBGE/Core.cpp
@@ -3138,6 +3138,8 @@ void Core::main(float runTime)
 			}
 		}
 
+		sound->setListenerPos(screenCenter.x, screenCenter.y);
+
 		if (doScreenshot)
 		{
 			if (verbose) debugLog("screenshot");
diff --git a/BBGE/FmodOpenALBridge.cpp b/BBGE/FmodOpenALBridge.cpp
index 42a67ef..47f480e 100644
--- a/BBGE/FmodOpenALBridge.cpp
+++ b/BBGE/FmodOpenALBridge.cpp
@@ -672,7 +672,7 @@ class OpenALChannel
 {
 public:
     OpenALChannel();
-    FMOD_RESULT setVolume(const float _volume, const bool setstate=true);
+    FMOD_RESULT setVolume(const float _volume);
     FMOD_RESULT setPaused(const bool _paused, const bool setstate=true);
     FMOD_RESULT setFrequency(const float _frequency);
     FMOD_RESULT setPriority(int _priority);
@@ -682,6 +682,14 @@ public:
     FMOD_RESULT setChannelGroup(ChannelGroup *channelgroup);
     FMOD_RESULT stop();
     FMOD_RESULT setPan(const float pan);
+    FMOD_RESULT setCallback(FMOD_CHANNEL_CALLBACK callback);
+    FMOD_RESULT getUserData(void **userdata);
+    FMOD_RESULT setUserData(void *userdata);
+    FMOD_RESULT set3DAttributes(const FMOD_VECTOR *pos, const FMOD_VECTOR *vel);
+    FMOD_RESULT set3DMinMaxDistance(float mindistance, float maxdistance);
+    FMOD_RESULT setMode(FMOD_MODE mode);
+    FMOD_RESULT getMode(FMOD_MODE *mode);
+
     void setGroupVolume(const float _volume);
     void setSourceName(const ALuint _sid) { sid = _sid; }
     ALuint getSourceName() const { return sid; }
@@ -703,6 +711,9 @@ private:
     OggDecoder *decoder;
     bool inuse;
     bool initial;
+    FMOD_CHANNEL_CALLBACK callback;
+    void *userdata;
+    FMOD_MODE _mode;
 };
 
 
@@ -743,6 +754,7 @@ OpenALChannel::OpenALChannel()
     , decoder(NULL)
     , inuse(false)
     , initial(true)
+    , _mode(FMOD_DEFAULT)
 {
 }
 
@@ -805,10 +817,9 @@ void OpenALChannel::update()
 }
 
 ALBRIDGE(Channel,setVolume,(float volume),(volume))
-FMOD_RESULT OpenALChannel::setVolume(const float _volume, const bool setstate)
+FMOD_RESULT OpenALChannel::setVolume(const float _volume)
 {
-    if (setstate)
-        volume = _volume;
+    volume = _volume;
     alSourcef(sid, AL_GAIN, _volume * groupvolume);
     SANITY_CHECK_OPENAL_CALL();
     return FMOD_OK;
@@ -922,6 +933,98 @@ FMOD_RESULT OpenALChannel::setPan(const float pan)
     return FMOD_OK;
 }
 
+ALBRIDGE(Channel,stop,(),())
+FMOD_RESULT OpenALChannel::stop()
+{
+	if (decoder)
+	{
+		decoder->stop();
+		decoder = NULL;
+	}
+	alSourceStop(sid);
+	SANITY_CHECK_OPENAL_CALL();
+	alSourcei(sid, AL_BUFFER, 0);
+	SANITY_CHECK_OPENAL_CALL();
+	if (sound)
+	{
+		sound->release();
+		sound = NULL;
+	}
+	if (inuse && callback)
+		callback(this, FMOD_CHANNEL_CALLBACKTYPE_END, NULL, NULL); // FIXME commanddata missing
+	paused = false;
+	inuse = false;
+	initial = false;
+	return FMOD_OK;
+}
+
+
+ALBRIDGE(Channel,setCallback,(FMOD_CHANNEL_CALLBACK callback),(callback))
+FMOD_RESULT OpenALChannel::setCallback(FMOD_CHANNEL_CALLBACK callback)
+{
+	this->callback = callback;
+	return FMOD_OK;
+}
+
+ALBRIDGE(Channel,getUserData,(void **userdata),(userdata))
+FMOD_RESULT OpenALChannel::getUserData(void **userdata)
+{
+	*userdata = this->userdata;
+	return FMOD_OK;
+}
+
+ALBRIDGE(Channel,setUserData,(void *userdata),(userdata))
+FMOD_RESULT OpenALChannel::setUserData(void *userdata)
+{
+	this->userdata = userdata;
+	return FMOD_OK;
+}
+
+ALBRIDGE(Channel,set3DAttributes,(const FMOD_VECTOR *pos, const FMOD_VECTOR *vel),(pos, vel))
+FMOD_RESULT OpenALChannel::set3DAttributes(const FMOD_VECTOR *pos, const FMOD_VECTOR *vel)
+{
+	if (pos)
+		alSource3f(sid, AL_POSITION, pos->x, pos->y, pos->z);
+	if(vel)
+		alSource3f(sid, AL_VELOCITY, vel->x, vel->y, vel->z);
+
+	SANITY_CHECK_OPENAL_CALL();
+
+	return FMOD_OK;
+}
+
+ALBRIDGE(Channel,set3DMinMaxDistance,(float mindistance, float maxdistance),(mindistance, maxdistance))
+FMOD_RESULT OpenALChannel::set3DMinMaxDistance(float mindistance, float maxdistance)
+{
+	alSourcef(sid, AL_REFERENCE_DISTANCE, mindistance);
+	alSourcef(sid, AL_MAX_DISTANCE, maxdistance);
+	SANITY_CHECK_OPENAL_CALL();
+	return FMOD_OK;
+}
+
+ALBRIDGE(Channel,setMode,(FMOD_MODE mode),(mode))
+FMOD_RESULT OpenALChannel::setMode(FMOD_MODE mode)
+{
+	_mode = mode;
+	
+	if(mode & FMOD_3D_HEADRELATIVE)
+		alSourcei(sid, AL_SOURCE_RELATIVE, AL_TRUE);
+	else // FMOD_3D_WORLDRELATIVE is the default according to FMOD docs
+		alSourcei(sid, AL_SOURCE_RELATIVE, AL_FALSE);
+
+	SANITY_CHECK_OPENAL_CALL();
+
+	return FMOD_OK;
+}
+
+ALBRIDGE(Channel,getMode,(FMOD_MODE *mode),(mode))
+FMOD_RESULT OpenALChannel::getMode(FMOD_MODE *mode)
+{
+	*mode = _mode;
+	return FMOD_OK;
+}
+
+
 
 // FMOD::ChannelGroup implementation...
 
@@ -1066,29 +1169,6 @@ void OpenALChannel::setSound(OpenALSound *_sound)
 }
 
 
-ALBRIDGE(Channel,stop,(),())
-FMOD_RESULT OpenALChannel::stop()
-{
-    if (decoder)
-    {
-        decoder->stop();
-        decoder = NULL;
-    }
-    alSourceStop(sid);
-    SANITY_CHECK_OPENAL_CALL();
-    alSourcei(sid, AL_BUFFER, 0);
-    SANITY_CHECK_OPENAL_CALL();
-    if (sound)
-    {
-        sound->release();
-        sound = NULL;
-    }
-    paused = false;
-    inuse = false;
-    initial = false;
-    return FMOD_OK;
-}
-
 
 
 // FMOD::System implementation ...
@@ -1112,6 +1192,7 @@ public:
     FMOD_RESULT getDriverCaps(const int id, FMOD_CAPS *caps, int *minfrequency, int *maxfrequency, FMOD_SPEAKERMODE *controlpanelspeakermode);
     FMOD_RESULT getMasterChannelGroup(ChannelGroup **channelgroup);
     FMOD_RESULT playSound(FMOD_CHANNELINDEX channelid, Sound *sound, bool paused, Channel **channel);
+    FMOD_RESULT set3DListenerAttributes(int listener, const FMOD_VECTOR *pos, const FMOD_VECTOR *vel, const FMOD_VECTOR *forward, const FMOD_VECTOR *up);
 
     FMOD_RESULT getNumChannels(int *maxchannels_ret);
 
@@ -1415,7 +1496,7 @@ FMOD_RESULT OpenALSystem::init(int maxchannels, const FMOD_INITFLAGS flags, cons
             break;
         }
 
-        alSourcei(sid, AL_SOURCE_RELATIVE, AL_TRUE);
+        alSourcei(sid, AL_SOURCE_RELATIVE, AL_FALSE);
         SANITY_CHECK_OPENAL_CALL();
         alSource3f(sid, AL_POSITION, 0.0f, 0.0f, 0.0f);  // no panning or spatialization in Aquaria.
         SANITY_CHECK_OPENAL_CALL();
@@ -1426,6 +1507,12 @@ FMOD_RESULT OpenALSystem::init(int maxchannels, const FMOD_INITFLAGS flags, cons
     ss << "Using " << num_channels << " sound channels.";
     debugLog(ss.str());
 
+    // HACK: FMOD doesn't do this.
+    // For completeness, we pass FMOD_3D_LINEARROLLOFF to createSound().
+    alDistanceModel(AL_LINEAR_DISTANCE_CLAMPED);
+    SANITY_CHECK_OPENAL_CALL();
+
+
     OggDecoder::startDecoderThread();
 
     return FMOD_OK;
@@ -1539,6 +1626,43 @@ FMOD_RESULT OpenALSystem::update()
     return FMOD_OK;
 }
 
+ALBRIDGE(System, set3DListenerAttributes, (int listener, const FMOD_VECTOR *pos, const FMOD_VECTOR *vel, const FMOD_VECTOR *forward, const FMOD_VECTOR *up),
+    (listener, pos, vel, forward, up));
+FMOD_RESULT OpenALSystem::set3DListenerAttributes(int listener, const FMOD_VECTOR *pos, const FMOD_VECTOR *vel, const FMOD_VECTOR *forward, const FMOD_VECTOR *up)
+{
+    // ignore listener parameter; there is only one listener in OpenAL.
+
+    if(up || forward)
+    {
+        ALfloat orientation[6];
+        alGetListenerfv(AL_ORIENTATION, &orientation[0]);
+
+        if(forward)
+        {
+            orientation[0] = forward->x;
+            orientation[1] = forward->y;
+            orientation[2] = forward->z;
+        }
+
+        if(up)
+        {
+            orientation[3] = up->x;
+            orientation[4] = up->y;
+            orientation[5] = up->z;
+        }
+
+        alListenerfv(AL_ORIENTATION, &orientation[0]);
+    }
+
+    if(pos)
+        alListener3f(AL_POSITION, pos->x, pos->y, pos->z);
+
+    if(vel)
+        alListener3f(AL_VELOCITY, vel->x, vel->y, vel->z);
+
+    return FMOD_OK;
+}
+
 
 // misc FMOD bits...
 
diff --git a/BBGE/FmodOpenALBridge.h b/BBGE/FmodOpenALBridge.h
index 3da553b..6de856b 100644
--- a/BBGE/FmodOpenALBridge.h
+++ b/BBGE/FmodOpenALBridge.h
@@ -60,6 +60,24 @@ typedef enum
     FMOD_DSP_TYPE_REVERB,
 } FMOD_DSP_TYPE;
 
+typedef enum
+{
+     FMOD_CHANNEL_CALLBACKTYPE_END,                  /* Called when a sound ends. */
+     FMOD_CHANNEL_CALLBACKTYPE_VIRTUALVOICE,         /* Called when a voice is swapped out or swapped in. */
+     FMOD_CHANNEL_CALLBACKTYPE_SYNCPOINT,            /* Called when a syncpoint is encountered.  Can be from wav file markers. */
+     FMOD_CHANNEL_CALLBACKTYPE_OCCLUSION,            /* Called when the channel has its geometry occlusion value calculated.  Can be used to clamp or change the value. */
+
+     FMOD_CHANNEL_CALLBACKTYPE_MAX,                  /* Maximum number of callback types supported. */
+     FMOD_CHANNEL_CALLBACKTYPE_FORCEINT = 65536      /* Makes sure this enum is signed 32bit. */
+} FMOD_CHANNEL_CALLBACKTYPE;
+
+typedef struct
+{
+	float x;        /* X co-ordinate in 3D space. */
+	float y;        /* Y co-ordinate in 3D space. */
+	 float z;        /* Z co-ordinate in 3D space. */
+} FMOD_VECTOR;
+
 #define F_CALLBACK
 
 typedef int FMOD_CAPS;
@@ -77,8 +95,13 @@ typedef int FMOD_MODE;
 #define FMOD_LOOP_OFF     (1<<4)
 #define FMOD_LOOP_NORMAL  (1<<5)
 #define FMOD_LOWMEM       (1<<6)
+#define FMOD_3D           (1<<7)
+#define FMOD_3D_HEADRELATIVE (1<<8)
+#define FMOD_3D_WORLDRELATIVE (1<<9)
+#define FMOD_3D_LINEARROLLOFF (1<<10)
 #define FMOD_DEFAULT      (FMOD_2D | FMOD_HARDWARE)
 
+
 typedef int FMOD_CREATESOUNDEXINFO;
 
 #define FMOD_INIT_NORMAL 0
@@ -92,6 +115,8 @@ typedef FMOD_RESULT (*FMOD_FILE_CLOSECALLBACK)(void *,void *);
 typedef FMOD_RESULT (*FMOD_FILE_READCALLBACK)(void *,void *,unsigned int,unsigned int *,void *);
 typedef FMOD_RESULT (*FMOD_FILE_SEEKCALLBACK)(void *,unsigned int,void *);
 
+typedef FMOD_RESULT (*FMOD_CHANNEL_CALLBACK)(void *channel, FMOD_CHANNEL_CALLBACKTYPE type, void *commanddata1, void *commanddata2);
+
 
 typedef enum
 {
@@ -146,6 +171,13 @@ namespace FMOD
         FMOD_RESULT stop();
         FMOD_RESULT setPaused(bool paused);
         FMOD_RESULT setPan(float pan);
+        FMOD_RESULT setCallback(FMOD_CHANNEL_CALLBACK callback);
+        FMOD_RESULT getUserData(void **userdata);
+        FMOD_RESULT setUserData(void *userdata);
+        FMOD_RESULT set3DAttributes(const FMOD_VECTOR *pos, const FMOD_VECTOR *vel);
+        FMOD_RESULT set3DMinMaxDistance(float mindistance, float maxdistance);
+        FMOD_RESULT setMode(FMOD_MODE mode);
+        FMOD_RESULT getMode(FMOD_MODE *mode);
     };
 
     class System
@@ -165,6 +197,7 @@ namespace FMOD
         FMOD_RESULT setFileSystem(FMOD_FILE_OPENCALLBACK useropen, FMOD_FILE_CLOSECALLBACK userclose, FMOD_FILE_READCALLBACK userread, FMOD_FILE_SEEKCALLBACK userseek, int blockalign);
         FMOD_RESULT setSpeakerMode(FMOD_SPEAKERMODE speakermode);
         FMOD_RESULT update();
+        FMOD_RESULT set3DListenerAttributes(int listener, const FMOD_VECTOR *pos, const FMOD_VECTOR *vel, const FMOD_VECTOR *forward, const FMOD_VECTOR *up);
 
 	// BBGE-specific...
 	FMOD_RESULT getNumChannels(int *maxchannels_ret);
diff --git a/BBGE/SoundManager.cpp b/BBGE/SoundManager.cpp
index 4dfa57c..621c83b 100644
--- a/BBGE/SoundManager.cpp
+++ b/BBGE/SoundManager.cpp
@@ -1057,6 +1057,11 @@ bool SoundManager::playVoice(const std::string &name, SoundVoiceType svt, float
 
 			voiceChannel->setPan(0);
 			voiceChannel->setFrequency(1);
+			voiceChannel->setCallback(NULL);
+			voiceChannel->setUserData(NULL);
+			voiceChannel->set3DMinMaxDistance(0.0f, 0.0f);
+			setSoundPos(voiceChannel, 0, 0);
+			setSoundRelative(voiceChannel, true);
 
 			result = voiceChannel->setPaused(false);
 			checkError();
@@ -1143,13 +1148,32 @@ void *SoundManager::playSfx(const PlaySfx &play)
 		checkError();
 	}
 
-	channel->setPan(play.pan);
+	//channel->setPan(play.pan);
 
 	float freq = play.freq;
 	if (freq <= 0)
 		freq = 1;
 	channel->setFrequency(freq);
 
+	channel->setCallback(NULL);
+	channel->setUserData(NULL);
+
+	// position in space
+	setSoundPos(channel, play.x, play.y);
+	setSoundRelative(channel, play.relative);
+
+	// distance gain attenuation: stereo separation + silence at further away than maxdist
+	float maxdist = play.maxdist;
+	if (!maxdist)
+		maxdist = 1300;
+
+	if(maxdist > 0)
+		channel->set3DMinMaxDistance(maxdist * 0.3, maxdist); // HACK: this works reasonably well
+	else
+		channel->set3DMinMaxDistance(0, 0); // no attenuation
+
+
+
 	result = channel->setPaused(false);
 	checkError();
 
@@ -1160,23 +1184,11 @@ void *SoundManager::playSfx(const PlaySfx &play)
 	return 0;
 }
 
-void *SoundManager::playSfx(const std::string &name, float vol, float pan, float freq)
+void *SoundManager::playSfx(const std::string &name, float vol)
 {
 	PlaySfx play;
 	play.name = name;
 	play.vol = vol;
-	play.pan = pan;
-	play.freq = freq;
-	return playSfx(play);
-}
-
-void *SoundManager::playSfx(int handle, float vol, float pan, float freq)
-{
-	PlaySfx play;
-	play.handle = handle;
-	play.vol = vol;
-	play.pan = pan;
-	play.freq = freq;
 	return playSfx(play);
 }
 
@@ -1205,49 +1217,6 @@ bool SoundManager::isPlayingMusic(const std::string &name)
 	return false;
 }
 
-bool SoundManager::playMod(const std::string &name)
-{
-	std::string fn;
-
-	fn = musicPath + name;
-	stringToLower(fn);
-
-	FMOD_MODE mode=0;
-
-	//FMOD_CREATESOUNDEXINFO exinfo;
-
-	//mode = FMOD_2D | FMOD_SOFTWARE | FMOD_CREATESAMPLE;//FMOD_CREATESTREAM;
-	mode = FMOD_HARDWARE | FMOD_2D | FMOD_CREATESTREAM;
-
-	debugLog("createSound: " + fn);
-	result = SoundCore::system->createSound(fn.c_str(), mode, 0, &modSound);
-	if (checkError())
-	{
-		debugLog("createSound failed");
-		return false;
-	}
-
-	debugLog("playSound");
-	result = SoundCore::system->playSound(FMOD_CHANNEL_FREE, modSound, false, &modChannel);
-	checkError();
-
-	debugLog("setChannelGroup");
-	result = modChannel->setChannelGroup(group_mus);
-	checkError();
-
-	debugLog("setPriority");
-	result = modChannel->setPriority(0); // should be highest priority (according to the docs)
-	checkError();
-
-	debugLog("setPaused");
-	result = modChannel->setPaused(false);
-	checkError();
-
-	debugLog("returning");
-
-	return true;
-}
-
 bool SoundManager::playMusic(const std::string &name, SoundLoopType slt, SoundFadeType sft, float trans, SoundConditionType sct)
 {
 	debugLog("playMusic: " + name);
@@ -1373,6 +1342,11 @@ bool SoundManager::playMusic(const std::string &name, SoundLoopType slt, SoundFa
 
 		musicChannel->setFrequency(1); // in case the channel was used by a pitch-shifted sound before
 		musicChannel->setPan(0);
+		musicChannel->setCallback(NULL);
+		musicChannel->setUserData(NULL);
+		musicChannel->set3DMinMaxDistance(0.0f, 0.0f); // disable attenuation // FIXME: is that right?
+		setSoundPos(musicChannel, 0, 0);
+		setSoundRelative(musicChannel, true);
 
 		result = musicChannel->setPaused(false);		// This is where the sound really starts.
 		checkError();
@@ -1557,7 +1531,7 @@ Buffer SoundManager::loadSoundIntoBank(const std::string &filename, const std::s
 	if (sound)
 		return sound;
 
-	FMOD_MODE mode = FMOD_DEFAULT | FMOD_LOWMEM;
+	FMOD_MODE mode = FMOD_DEFAULT | FMOD_LOWMEM | FMOD_3D | FMOD_3D_LINEARROLLOFF;
 	if (loop)
 		mode |= FMOD_LOOP_NORMAL;
 
@@ -1680,3 +1654,122 @@ bool SoundManager::checkError()
 #endif
 	return false;
 }
+
+void SoundManager::setListenerPos(float x, float y)
+{
+	FMOD_VECTOR pos;
+	pos.x = x;
+	pos.y = y;
+	pos.z = 0.0f;
+
+	FMOD_VECTOR forward;
+	forward.x = 0.0f;
+	forward.y = 0.0f;
+	forward.z = -1.0f;
+
+	FMOD_VECTOR up;
+	up.x = 0.0f;
+	up.y = 1.0f;
+	up.z = 0.0f;
+
+	SoundCore::system->set3DListenerAttributes(0, &pos, NULL, &forward, &up);
+}
+
+void SoundManager::setSoundPos(void *channel, float x, float y)
+{
+	if (!channel)
+		return;
+
+	FMOD::Channel *pChannel = (FMOD::Channel*)channel;
+	FMOD_VECTOR pos;
+	pos.x = x;
+	pos.y = y;
+	pos.z = 0.0f;
+
+	pChannel->set3DAttributes(&pos, NULL);
+}
+
+void SoundManager::setSoundRelative(void *channel, bool relative)
+{
+	if (!channel)
+		return;
+
+	FMOD::Channel *pChannel = (FMOD::Channel*)channel;
+
+	FMOD_MODE mode = 0;
+	pChannel->getMode(&mode);
+	FMOD_MODE newmode = mode & ~(FMOD_3D_WORLDRELATIVE | FMOD_3D_HEADRELATIVE);
+	if(relative)
+		newmode |= (FMOD_3D_HEADRELATIVE | FMOD_3D);
+	else
+		newmode |= (FMOD_3D_WORLDRELATIVE | FMOD_3D);
+
+	if (mode != newmode)
+		pChannel->setMode(newmode);
+}
+
+static FMOD_RESULT s_soundHolderCallback(void *channel, FMOD_CHANNEL_CALLBACKTYPE type, void *commanddata1, void *commanddata2)
+{
+	if (!channel)
+		return FMOD_ERR_INVALID_PARAM;
+
+	SoundHolder *holder = NULL;
+	FMOD::Channel *pChannel = (FMOD::Channel*)channel;
+	pChannel->getUserData((void**)&holder);
+
+	switch(type)
+	{
+		case FMOD_CHANNEL_CALLBACKTYPE_END:
+			holder->unlinkSound(channel);
+			break;
+		default:
+			return FMOD_ERR_INVALID_PARAM;
+	}
+
+	return FMOD_OK;
+}
+
+
+SoundHolder::~SoundHolder()
+{
+	unlinkAllSounds();
+}
+
+void SoundHolder::updateSoundPosition(float x, float y)
+{
+	if (activeSounds.size())
+		for(std::set<void*>::iterator it = activeSounds.begin(); it != activeSounds.end(); ++it)
+			sound->setSoundPos(*it, x, y);
+}
+
+void SoundHolder::stopAllSounds()
+{
+	// activeSounds is modified by SoundManager::stopSfx(), which calls unkinkSound(), can't use iterator here
+	while(activeSounds.size())
+		sound->stopSfx(*activeSounds.begin());
+}
+
+void SoundHolder::unlinkSound(void *channel)
+{
+	FMOD::Channel *pChannel = (FMOD::Channel*)channel;
+	pChannel->setUserData(NULL);
+	pChannel->setCallback(NULL);
+	activeSounds.erase(channel);
+}
+
+void SoundHolder::linkSound(void *channel)
+{
+	if (!channel)
+		return;
+	FMOD::Channel *pChannel = (FMOD::Channel*)channel;
+	pChannel->setUserData(this);
+	pChannel->setCallback(s_soundHolderCallback);
+	activeSounds.insert(channel);
+}
+
+void SoundHolder::unlinkAllSounds()
+{
+	while(activeSounds.size())
+		unlinkSound(*activeSounds.begin());
+}
+
diff --git a/BBGE/SoundManager.h b/BBGE/SoundManager.h
index eb9646f..cd18d65 100644
--- a/BBGE/SoundManager.h
+++ b/BBGE/SoundManager.h
@@ -24,6 +24,7 @@ Foundation, Inc., 59 Temple Place - Suite 330, Boston, MA  02111-1307, USA.
 #include <string>
 #include <list>
 #include <queue>
+#include <set>
 #include "Vector.h"
 
 // if using SDL_MIXER
@@ -103,20 +104,26 @@ enum SoundLoadType
 
 struct PlaySfx
 {
-	PlaySfx() : priority(0.5), handle(0), pan(0), vol(1), fade(SFT_NONE), time(0), freq(1), loops(0), channel(BBGE_AUDIO_NOCHANNEL) {}
+	PlaySfx() : priority(0.5), handle(0), vol(1), fade(SFT_NONE),
+		time(0), freq(1), loops(0), channel(BBGE_AUDIO_NOCHANNEL),
+		maxdist(0), x(0), y(0), relative(true) {}
 
 	std::string name;
 	intptr_t handle;
-	float pan;
 	float vol;
 	float time;
 	float freq;
 	int loops;
 	int channel;
 	float priority;
+	float maxdist; // distance gain attenuation. if 0: use default value, -1: don't attenuate at all
 	SoundFadeType fade;
+	float x, y;
+	bool relative;
 };
 
+class SoundHolder; // defined below
+
 class SoundManager
 {
 public:
@@ -140,16 +147,18 @@ public:
 	SoundCore::Buffer getBuffer(const std::string &name);
 
 	void *playSfx(const PlaySfx &play);
-	void *playSfx(const std::string &name, float vol=1, float pan=0, float freq=1);
-	void *playSfx(int handle, float vol=1, float pan=0, float freq=1);
+	void *playSfx(const std::string &name, float vol=1);
 
-	bool playMod(const std::string &name);
 	bool playMusic(const std::string &name, SoundLoopType=SLT_NORMAL, SoundFadeType sft=SFT_NONE, float trans=0, SoundConditionType sct=SCT_NORMAL);
 	bool playVoice(const std::string &name, SoundVoiceType=SVT_QUEUE, float vmod=-1);
 
 	float getMusicFader();
 	float getVoxFader();
 
+	void setListenerPos(float x, float y);
+	void setSoundPos(void *channel, float x, float y);
+	void setSoundRelative(void *channel, bool relative);
+
 	std::string getVolumeString();
 
 	void toggleEffectMusic(SoundEffectType effect, bool on);
@@ -248,6 +257,28 @@ private:
 	void (*loadProgressCallback)();
 };
 
+class SoundHolder
+{
+	friend class SoundManager;
+public:
+	void updateSoundPosition(float x, float y);
+	void stopAllSounds();
+	void unlinkSound(void *channel);
+	void linkSound(void *channel);
+	void unlinkAllSounds();
+
+protected:
+	virtual ~SoundHolder();
+
+private:
+	std::set<void*> activeSounds;
+};
+
+
 extern SoundManager *sound;
 
+
+
+
+
 #endif