Abstract: Stereo processing circuitry is provided for modifying stereo signals so as to enhance the perception of imaging and ambience in non-ideal listening locations and confined environments such as the driver's location in a stereo-equipped vehicle. In a first modified mode, the stereo channels are symmetrically cross-coupled in additive polarity at high frequencies to enhance image localization, and in subtractive polarity over a full audio frequency spectrum to enhance stereo ambience. In a second modified mode, additional cascaded circuitry introduces frequency-selective polarity inversion and asymmetrical cross-coupling to compensate for the closer proximity of one of the loudspeakers to the listener's location, for the direct sound path from the nearer loudspeaker, and for the typical off-axis orientation of the nearer loudspeaker relative to the listener's position.