A chat room system is provided that includes sending a signal representative of a sound at a first user location to a second user location and establishing, in a chat room, a virtual first user location and a virtual second user location. It further includes establishing the orientation of a listening system at the second user location and processing the signal, using the orientation of the listening system, at a plurality of levels of realism to provide a binaural sound at the second user location having an analogous spatial relationship between the second user location and the first user location as the virtual spatial relationship between the virtual second user location and the virtual first user location.