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A high-quality, three-channel stereophonic recorder and playback unit was built for experimental work, to determine the requirements of a unit suitable for home entertainment. The experimental unit was purposely designed to give higher quality than is required for the home, so that the various characteristics could be degraded until performance was unsatisfactory. Results of tests indicate that two channels are adequate for a small room, and that a control track for volume expansion is unnecessary. Experiments were made with loudspeaker and microphone locations, best results being obtained with a "dihedral" mounting of two loudspeakers. This arrangement allows the design of a stereophonic reproducer in a single cabinet, and appears practical for home use.