Thanks everyone for all the pointers (mariush for the part number and Rasz for the links to various projects, especially ManyEar).
For the first iteration, I'll go with Electrect Microphones, since I have a few at home and they have better qualities compared to MEMS. For me, the MIC form factor is not a major concern, since localization requires a distance span to mount multiple MICs anyways.
@RichardCrowley, I am in Toronto(electrical engineering student at University of Toronto). I don't have access to specific suppliers, but I do have a few hundred dollars funding for this project. For the end demo, I want the system price to be on the lower end of 50~100 dollars. I want it to work on micro controller instead of a computer(I can replace the micro controller with a low end FPGA if the end algorithm requires parallel computation that CMU can't handle in real-time)
As for my required sampling rate and depth question, I don't have an answer right now. As part of the project, I do want to figure out trade off between these parameters and accuracy. So, for now, I can only say as high as possible(within budget limit).
For the audio acquisition part, it seems I have three approaches:
1. electrect microphone -> amplifier circuit -> ADC (Micro controller onboard ADC or separate ADC)
2. electrect microphone -> audio codec integrated chip like Si3000 -> I2C to Micro controller
3. electrect microphone -> sound capture card(like project ManyEar
http://sourceforge.net/p/manyears/wiki/Main_Page/) -> Micro Controller
I am wondering which approach do you guys think is the best? I am not very clear about the benefits of using dedicated sound capture card, would it help in this case ?