QUOTE(knutinh @ Nov 10 2006, 03:58)

There is a great article from the 70s - I cant remember the author. It is the "reference" on audibility of phase distortion.
In essence, they found that low-order phase distortion typically found in loudspeaker crossovers was inaudible in all but a few very special circumstances, such as dry anechoic speech played back over headphones.
-k
There have been a variety of experiments in this regard. Somewhere on this board is a discussion of this subject, where somebody write a matlab script to generate a couple of signals that show that inside of a critical band, in fact phase shift is an issue, IF it's a phase shift that doesn't look like a pure delay.
There have been a variety of reports that "phase shift doesn't matter" that have used many, many degrees of phase shift, but the shape of the phase shift was very close to proportional to frequency, which results in something very much like a pure delay.
On the other hand, 180 degress of phase shift across the sidebands of an AM signal makes it into a narrowband FM signal, and if the sidebands are within a critical bandwidth, the two seem to sound substantilly different.