Holophonic sound is similar to binaural...but they are not recorded the same.
Binaural uses a mock human head that captures sound bouncing off our ear lobes, off our head, the delay from one ear to the other, etc.
Holophonic is developed by a guy named Hugo Zuccarelli. It's based on the same principle as projected holograms (you remember those little devices where you could place a paper clip in them and they would project the paperclip on the outside of the device?). Much like how holograms use a reference beam he believes the ear and brain uses it's own reference beam.
External sounds are recorded with synthesized reference sounds and the brain/ear provides the second reference beam when listening back to it...effectively decoding the original signal and reproducing all the original ambient conditions.
Some people have found that other senses kick in when listening to holophonic sound...for example, smelling sulphur when the match is lit. Or in another example floating around the net, the warm breath of a woman whispering in your ear.
Holophonic sound acts three dimensional by creating phase interference patterns. Hearing impaired people also report actually hearing when playing back these recordings....as well, blind people report visual imagery.
The problem is holophonic sound, like binaural, loses most spatial reproduction when played through normal speakers. Although, Zuccarelli designed some sort of special speaker system that allows everyone in a crowd to hear the same holophonic recording.
I also don't think it's really known what kind of "reference beam" the ear puts off. Some say it may be very very high, inaudible frequencies...others think it may be pink noise or something similar.
Sound Ideas makes some SFX CDs using this process that you can purchase.
Here's the woman whispering in your ear...even creepier than the matches, IMO when listening with headphones:
http://www.lightningmp3.com/live/file.php?fid=2787