FAQ Clarification - Parcel 'Sound' Management

I was just hoping for a quick clarification on the Land FAQ, located here...

http://secondlife.com/knowledgebase/article.php?id=144

When referencing the option to restrict spatialized sound, the FAQ says the following:

"Restrict spatialized sound to this parcel: Checking this means that sounds from outside the parcel don't enter, and sounds from inside the parcel don't leave."

By 'sounds' is that referring to .wav/.mp3 files played by avatars or scripted objects, or to public chat from avatars? (chat that appears in the public channel 0 in normal conversation)

Anyone who has lived on First Land on a 16x32 plot with other 16x32 plots squished up on them all around knows that when you have conversations going on in more than one adjacent lot at a time, chat spam can be an issue, hence why I was curious about this option.

Oh, and as one last note... assuming the above option does NOT restrict chat spam into and out of a parcel, are there any known options for doing so?

Thanks for the clarification!

In this case, "sounds" refers to actual audio created by objects, avatars, or streaming media. Chat from neighboring parcels will not be restricted.

Currently, you can limit chat "bleed" from other parcels by using the Mute feature.