In this series of papers, we consider human auditory localization and how its deficiencies can be reduced by appropriate processing and coding of acoustical signals in teleoperator and virtual-environment systems. Attention is given to how localization cues can be altered to improve the just-noticeable-difference (JND) in spatial position and to phenomena related to the use of such altered localization cues for the identification of spatial position. Unlike most current studies of synthetic auditory localization, our study includes consideration of distance as well as direction. In this first paper of the series, we provide general background material. In subsequent papers, we will present a variety of empirical results.