No, Randy.
In order you to determine the direction of the game sounds your sound settings have to be in stereo or multichannel, depending on your speakers/headphones. Windows config is fine if it's set to stereo or multichannel (5.1, 7.1 etc.). There's exceptions for example if you're using both your headset for voice and your speakers for other sounds at the same time, but supposedly you're not doing that.
If this makes it any clearer: Mono means one, stereo means two. If you have one engine roaring, you can't hear it from two different locations. But you can hear it with two ears. If you turn your head, one ear will be closer to the engine and thus hears it louder than the other one. That's the idea of stereophonic hearing. It's actually triangulation. By the volume difference in your ears your brain can calculate the location of the engine.