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I imagine some A VST host will do similar - some people use a PC with VST effects as a 'guitar effects processor' - which, depending on what VST effects have - (like a srround panner or surround reverb) will take a stereo signal and make a surround (upmix) sound out of it. Another effect could be a mp3 player VST - I thought I seen them as well (for guitarist to play along with - even real time phrase recorders)
Yes they exist - but as far as I know- its not really aimed at DJ'ing - because normally in a big club - mono is probably most common - certainly surround sux as it is more meant for a 'theater' (ala - no line in effects needed).
Then there is programs like reaktor that will do exactly as your asking - but it isnt free or cheap.
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