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In the code I just checked out the sound fades away as I drive, like it's not in the same position as the car anymore. As I go around the track it fades in and out, and as I come round the last turn it's only on the right side. I'm using OpenAL, haven't tested with FMOD but I bet it does the same thing.

I've been having trouble with FMOD... all of a sudden, the FMOD init started failing. *shrug*OK, fixed this in SVN.