Audio localization accuracy with two microphones I am attempting to find the location of sound using two microphones, using cross-correlation methods. I am not getting very consistent and accurate results, there are instances where there seem to be some kind of noise signals that interfere with the signal of interest and generate rubbish values of angles of arrival. 

I have tried looking at various methods to make it more accurate, but now I'm wondering whether I should be using more than two microphones to localize the sound. Is it possible that my decision to use two microphones only is causing the poor accuracy of localization?
Each ear have a Frequency Response $H_L(f)$ and $H_R(f)$ and transmission delays $\tau_L$ and $\tau_R$ according the 3D angle from where the sound source is located relative to each ear. 

Hence, for a fixed magnitude and frequency sound, $s(t)$, you have the response $H_L(f)s(t-\tau_L)$ and $H_R(f)s(t-\tau_R)$.

Actually, you cannot solve this for every position, or equivalently, you need a head movement (or ear movement in animals) for retrieving the proper angle. Besides, there exist some cone of confusion which means there is actually not a well defined 3D angle, mainly you only can locate 2D cones instead of location.

I will not solve it for you, but from that information you can trivially determine a location considering head movement onto some estimated direction, or an enough rich movement trajectory.