Hmm. Panning should be fairly easy; you just compare object's screen x-coordinate to midpoint of screen and set pan accordingly...
(-10000dB when object's far enough at left)
dB level is quite basic physics, but I don't have my physics book with me, so I can give only hunches;
dB = 20 * log ( I / I0 )
I = Intensity; If I remember correctly, it is is something like B/(r^3), where B is "baselevel" of volume, and I0 is intensity of basic scale, our previous value of B would do just fine. And r of course is range from sound source.
Formula 'dB = 20*log( B/r^3 )' might do fairly well most of the time, but you just have to find good values for B...
And of course, since we're dealing with computers here, you might want to alter
the formula a bit if [when?] this sounds bad...
As a reminder, -96dB is practically silence, since that's near the theoretical limit of 16-bit audio!