Sentence reception thresholds (SRTs) and babble detection thresholds (BDTs) were measured for signals presented from loudspeakers located at 0 deg and 90 deg azimuth. In addition, the S/B ratios necessary to achieve SRT in the presence of a 12-talker babble were determined under three conditions in which the speech and babble were presented from the same or spatially separated loudspeakers. In the first experiment, normal-hearing subjects were tested on two occasions. The results were highly reliable, with standard errors of the test-retest differences of less than 1dB for all conditions. In the second experiment, SRTs, BDTs, and S/B ratios were measured for three normal-hearing groups (less than or equal to 39, 40-54, and greater than or equal to 55 years) and for a fourth group with presbycusis (greater than or equal to 55 years). Presbycusics had higher SRTs and BDTs than all other groups regardless of age, and the oldest normals had higher thresholds than younger subjects. Presbycusics required higher S/B ratios than any of the normal groups, and the oldest normal group needed a higher S/B ratio compared to the youngest group. All groups demonstrated a significant advantage in S/B ratio when the sentences and babble sources were spatially separated compared to when they were presented from the same loudspeaker. There was no significant difference in the magnitude of advantage due to spatial separation of speech and noise between the normal groups regardless of age, but the presbycusics had significantly smaller advantages than all normals.(ABSTRACT TRUNCATED AT 250 WORDS)