Further experimentation showed that the difference between the two frequencies must be relatively small – under 30 hertz – for it to be perceived as a “beat”; frequencies with greater difference are perceived separately. Using binaural beats in various mental states while being recorded by an EEG (encepl…blahFIX) allowed researchers to further delineate the different wavelengths the human mind generates for different states of being. The categories are generally agreed upon as (from most to least “active” states): Gamma (extreme emotions or intense concentration), Beta (active thinking, concentration, anxiety, arousal), Alpha (drowsy, falling-asleep feeling, sometimes also general relaxation), Theta (dreaming sleep or deep meditation), and Delta (deep, dreamless sleep), but the wavelengths at which each occurs are not set in stone, though they generally run as over 40 hertz for Gamma, 13 to 29 for Beta, 7 to 13 for Alpha, 4 to 7 for Theta, and under 4 hertz for Delta.
What creates that transcendental feeling of being one with the universe? It could be the decreased activity in the brain's parietal lobe, which helps regulate the sense of self and physical orientation, research suggests. How does religion prompt divine feelings of love and compassion? Possibly because of changes in the frontal lobe, caused by heightened concentration during meditation. Why do many people have a profound sense that religion has changed their lives? Perhaps because spiritual practices activate the temporal lobe, which weights experiences with personal significance.
Brainwave entrainment is also known as brainwave synchronization.  According to Wikipedia  brainwave entrainment is “any practice that aims to cause brainwave frequencies to fall into step with a periodic stimulus having a frequency corresponding to the intended brain-state (for example, to induce sleep), usually attempted with the use of specialized software.”
Well, except for one reason: The power of suggestion. If I give you a music track and tell you that it will cure your headache, you're more likely to report that it cured your headache than you are to say "Well it didn't effect my headache, but it made my short-term memory better." An interesting experiment would be to buy a binaural track claimed to induce drunkenness, for example; play it for five friends without telling them the claim, and then ask how it made each of them feel. Give them multiple choices to select from. Chances are they're going to respond all over the map. If you have a friend who is a believer in binaural beats, I suggest going ahead and setting up this little test.

Business executive and radio producer Robert Monroe started experimenting with brainwave entrainment and has a series of powerful out of body experiences using it. In 1971 he published his cult classic “Journeys Out of the Body” sharing his experiences. He later created one of the first audio entrainment companies called Hemi Sync, alongside the Monroe Institute of Applied Sciences.
Our brains follow cues from outside stimuli, and brainwaves mimic the pulse rates of the sounds we expose it to. So, by creating tracks that pulse sound waves at a desired frequency, we can effectively coax our brain into that state. In layman's terms; by listening to some strange sounding brainwave frequency audios, we can literally slip our brain into a state of feeling calm, alert, focused, energized... and the list goes on. Pretty cool, right!?
As we start to fall asleep, we naturally pass through the relaxed, drowsy alpha state, dropping into the sleep states of theta and delta. Dreaming occurs in the theta state, but most of the time when we’re asleep in the theta state, we are unconscious, and unable to consciously control the dreams we experience. When we begin to wake up, our dominant brainwaves pass into the lower alpha wavelengths, but usually as this happens, we wake up out of our dreams. The key to lucid dreaming is to approach the alpha wavelength, but, before you fully wake up, move back down into the dreaming theta state. This way, your subconscious begins to wake up enough for you to take control of your surroundings, but you’re still asleep enough that those surroundings are a wonderfully malleable dream instead of reality.

The Transparent Corp forum – This forum is an invaluable resource for any brainwave entrainment user or enthusiast.  Most of the feedback is obviously focused on the Transparent Corp software, but with over 20,000+ posts now you can find answers to the whole array of brainwave entrainment questions on there.  (UPDATE: Sadly, the Transparent Corp forum has now been taken offline)
Please note: When you take one earphone out, move it as far away from your ear as possible. With some headphones you may still be able to hear the pulsating sound if the removed headphone is still fairly close to your ear; this is because your brain can still detect the frequency vibration coming from the headphone. In addition, push the earphone that’s still on your ear tightly to your ear, while moving the other earphone as far away as possible.