Mono sounds have one track, the same sound is played through the left and right speakers.  Stereo sounds have two tracks, track number one is played through the left speaker, track number two is played through the right speaker.  But with Sound Sculptor II you can also adjust the pan of each track so they aren't full left and right.  You can use "Mix down To Stereo" after you have adjusted the pans for each track.  This gives a more realistic stereo sound than full left and right.

You can simulate surround sound by having the same sound in two tracks and delaying one of them a little by inserting some silence at the beginning of the sound.