Originally posted by: Jeff7
From what I know of waves, the headphones would need to create the exact opposite of the actual sound being produced, otherwise it wouldn't work; it might even produce resonance or feedback, but I'm not sure of that part. It can't generate a generic "antinoise" wave, since there really is no specific generic noise.
The headphones would need to know exactly what kind of noise is coming at your ears, and generate, in realtime, the opposite waveforms to try to cancel out the noise - that's why they'd need a microphone. As for software doing this, I'd imagine there might be too much lag between the mic picking it up, processing through the soundcard, PCI bus, processor, then back, and out into the headphones.
Another option to look at (assuming you haven't) is a closed headphone design that completely surrounds the ears. It's not exactly sophisticated technology, but it helps.