Well, obviously pages are missing, but at one point the text states "... approach is compatible with ... if the height information is appropriately mixed into the playback array". In some magical way this vertical data must have been captured, which rather obviously occurs because there are pictures of mic setups with cartridges pointing up and down. Over the several pages there the words "up", "down" occurriing several times with respect to capturing sound in that axis.The excerpts from the microphone book? I scanned it; didn't find anything about capturing vertical information for playback. Did you?
Tim
So perhaps not the best first read, but the introduction in this paper, http://www.google.com.au/url?sa=t&rct=j&q=eigenmike&source=web&cd=50&ved=0CNYCEMUBMDE&url=http%3A%2F%2Fdocs.google.com%2Fviewer%3Fa%3Dv%26q%3Dcache%3AhlCv-PztZn8J%3Ausers.cecs.anu.edu.au%2F~thush%2Fugstudents%2FMCTChanThesis.pdf%2Beigenmike%26hl%3Den%26gl%3Dau%26pid%3Dbl%26srcid%3DADGEESjbfAKxV4jZXCbg4MG7jW7-zbJ2W89pzfYaZ_bfMGleK32toYQIZim0gQHcKsEfALmr2Wx1TZEDd_RiK4ZhJ-OgVLDXHqRFVwGkTCzbxPLWPfxjlpbGXBT5XynAudwSMur276Dw%26sig%3DAHIEtbRQa5bD8eIlicctIwmFxF4D1-xjKw&ei=Ou1AT6GkMs-jiAe9--zmBA&usg=AFQjCNFhvCcux7BZXnyVkDCZUlnXgTShOw, Theory and Design of Higher Order Field Recording, gives a nice overview.
In terms of understanding why this in fact works, the Wikipedia article: http: //en.wikipedia.org/wiki/Human_echolocation, gives some pretty good clues ...
Frank