I am using Burrow.wav, CycloneBirth1.wav, and the Dock.wav from WCII. I can't seem to find a way to make them dissipate with distance like any other sound. You have to check the "3D Sound box" in order to check the "Stop when out of range" box, and when I do this the sounds don't play ingame. Does this have to do with the effect and channel options?
If you play 3D sounds, make sure you DON'T use "Sound - Play sound" action. YOu must use action which allows you to set range of 3D sound [don't remember name ].
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