I have two ways to configure stereo as virtual surround:
1) via a Razer sound package (which I tried but never used and uninstalled), last version I used was: RazerSurroundInstaller_v2.00.10 about 2 years ago.
2) via my onboard Realtek sound card software as updated by Asus: Republic of Gamers SupremeFX, which has a Sonic Studio tab that includes a Virtual Surround button as well as a Sonic Soundstage tab that lets me adjust crossover to make sure I don't hear a sound exclusively in one ear no matter which way I turn my head.
The Soundblaster GUI should have similar settings available, though they may only be available if you specify a simple stereo or headset output.
If it doesn't, you can always try the Razer sound software.
Razer now has two versions, free and pay for Pro. It is set up for headphones and is up to version 7.1.
For this to happen, one of two things needs to be true:
1) Third Wire needs to expose the desired variables to programmers to make it easy to port the data to external software/hardware. Games that have applets generally had some sort of documentation/toolkit that would tell you how to exchange information between the game and other software and/or hardware. This is by far the easiest, best solution, but requires a lot of work on the developer's part. Multiple variables need to be gathered and communicated without impacting the speed/flow of the game. In SF2, debug mode exposes a few flight modeling parameters to the display. If there were an ini file that permitted the selection of instrument parameters and sent them to a file that could be shared at a decent frequency, it could work. The control aspects could be handled through DirectX/keyboard emulation as per other dedicated controllers.
2) Someone has to reverse engineer the SF2 exe so that they can make an application that can detect and locate the required variables in memory at run time. The application would have to read from key memory locations without disturbing the game. This could slow and/or crash the game unless the looping cycle and memory management of the game are fully understood. Someone could waste a lot of time trying to do this and still never succeed. So far, no one has publicly acknowledged having attempted this process.