why 3D Holographic sound

"I have speakers tilted up about 2""
There's your problem.

HI, thanks, Etran, will try leveling speakers, will get back to you with the results, thanks: and by the way,upgraded from VTL, to joulet 150mk11, ans boy what a diference; much more resolving, and organic sound, upgraded due to imaging problem, was a win,win, situation in my case:

I think Etran and Shadowshaman nailed it. Especially the 2" tilt. Take that away and your stage height will definitely drop down a bit. The best part is that it's FREE!

-RW-

I had a similar problem with my VR4JRs and resolved with tweeter diffraction devices offered by DifFraction be Gone at:
http://www.stereomojo.com/Diffraction%20Be%20Gone%20Review/DIFFRACTIONBEGONEREVIEW.htm
The are essentially pressed wool felt pads that surround your tweeter drivers. I tried to make my own but could not find the correct material online or locally.
I am in no way connected to this company. I tried their money back offer and will not be sending them back because they really tightened-up image placement. It is a solution incorporated in many off-the-shelf products such as Dunlavy speakers and a few others.

3 dimensionality has to do with reproducing the sound waves while retaining the phasing of the live performance. Wall/cieling,floor,reflections will fill in and confuse the compressions and rareractions, and ruin the 3 -D effect.