Reflecting upon this work it is of great pleasure to realise that it is a result of personal effort, lengthy discussions, great collaborations. This thesis would not have come to an end without the support of my supervisors, colleagues and friends. I am exceptionally grateful to my PhD supervisor Prof. John Mourjopoulos for supporting me throughout all these years every single moment. I would like to thank him for his invaluable guidance, for always motivating me to become better and for our creative and inspiring discussions about audio, acoustics and music. I feel exceptionally lucky to be a member of his research group -the "Audiogroup". Apart from the thesis supervisor, Prof. J. Mourjopoulos, the examination committee consisted of Prof. N. Fakotakis, Associate Prof. E. Dermatas, Prof. K. Berberidis, Associate Prof. D. Skarlatos, Assistant Prof. E. Psarakis and Assistant Prof. K. Moustakas. I would like to thank them all for their useful comments and suggestions that have improved the presentation and quality of this work. This work wouldn't have been the same in many respects without the help of two great mentors, Prof. Steven van de Par and Prof. Finn Jacobsen. Steven has inspired my work and stimulated my thinking. Without our discussions and his guidance, this work would not have been the same. Finn gave me the chance to see things from another point of view (it seems that it is not all about signal processing...), and offered me his precious time and help during my research visit at DTU. His death has been a great loss for me. I am also thankful to Aki Härmä, that has offered me an engineering way of thinking and made me believe that even difficult problems might find a solution. Many thanks to Prof. Armin Kohlrausch for having me in all these group meetings at Philips Research. It is difficult to find the appropriate words to thank all my good friends and colleagues from the "Audiogroup". I would like to thank my friend Elias, the person sitting right opposite to my desk, for standing me, helping me with my work, being patient with my thermostat, and for all these great moments we had together as office mates. I am grateful to my colleague and friend Alexandros for his continuous support for my work, for our great collaboration, for our timeless inspiring discussions and the great moments in Greece and abroad. Many thanks also to my friend Fotis for the enjoyable evenings in Patras and the musical recommendations. I would also like to thank Mpampis, for his priceless friendship and our great eating/talking soul mate sessions. Many thanks to Spyros for the fun moments as room mates and his advice for any audio/music-related engineering and philosophical issue. My new colleague Stamatis for the many laughs in the lab, reminding me what youth is all about. Last but not least, I would like to thank my dearest friend Thodoris, for the great time we had together and for always reminding me of the simplicity and joys of life. Many thanks to the oldest members of the "Audiogroup", Panos, Nicolas and Thomas for t...