A method and apparatus for processing digital stereo signals in a stereo system having a left (L) and right (R) channel in which digital information corresponding to the left (L) and right (R) channels is read from a source of digital information. The left (L) and right (R) channels of information are duplicated and various duplicated signals are processed by predetermined functions. The duplicated signals are manipulated by a plurality of user-defined functions (108, 124) to form a space signal, which is combined (126, 132) with other signals to form left and right output signals.