Waiting for it to download (dialup
)
I'm guessing that they've used one of the 'dummy' heads with a wig on it for the recording.
Saw a program about this, the heads are constructed to be as close to a real human head as possible as they have found that for true surround sound reproduction with only two sources(headphones, speakers etc) they need the head to be made with as close to the same densities as bone/skin/brain etc. Even cavities(like nasal passages, throat etc) and hair, the size of the nose etc have an effect on imaging quality. Ever noticed how loud noises(jets, drag cars etc) sound different if your mouth is open/closed?
The microphones are placed where you would expect... at the end of the ear canal which is also faithfully reproduced with its twists and ribs etc, not just a 'tube'.
Even then, because everyone is different, exact reproduction is not possible unless it's your head that they've modelled, but it's close enough to produce amazing results.
) so get Googling, looks like there's plenty to listen to out there 
