in my game there is a city, and in the city is a bar. you can't go in the bar but i want you to hear the music a little bit, and i want it to be muffled so it sounds like its coming from inside the bar, and its muffled by teh walls. is that possible?
You are are referring Audio Filters (High/Low pass) from Unity Pro feature.
Here some quote
Want to make party music change tone as your character walks away? Easy simply fade in a lowpass filter over distance, and you're good to go. No scripting required.
Unity features comparison here: http://unity3d.com/unity/licenses see the Audio Filters
Detail here: http://unity3d.com/unity/engine/audio
But in case you are not using Unity Pro, you can create some sounds that have different high and low sound volume that placed around the bar, and applied collision trigger with it. So when character get the trigger the correct sound will be played.
That will solve the problem but with more effort.
Not much of a way you can do this, but why not just record/make an effect on the sound that makes it muffled? As the player never hears the actual sound, let them just hear a muffled version of... Shouldn't that work?