There is a statement in the documentation
Inside the update, things like 3D sound, virtual channel updates, and emulated voice updates are executed.
If this is not called when using Channels and 3D sound, then incorrect results could occur.
If you dont use the above you should be ok.
edit: i just updated the docs with the following.
This updates the following things.
– 3D Sound. 3D positioning will not update if this function is not called.
– Virtual voices. If more voices are played than there are real hardware/software voices, this function must be called to handle the virtualization.
– *_NRT output modes. This function must be called to drive the output for these output modes.
– FMOD_INIT_STREAM_FROM_UPDATE. This function must be called to update the streamer if this flag has been used.
– Callbacks. This function must be called to fire callbacks if they are specified.
– FMOD_NONBLOCKING. This function must be called to make sounds opened with FMOD_NONBLOCKING flag to work properly.
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