I came across this relatively old post which describes how impressively Nexus One\'s noise cancellation works and I was wondering where can I find more information about its imp
About the Nexus One:
I haven't found any indication that it uses the other microphone to do noise reduction for the headset. It wouldn’t make much sense either as it would most likely just try to cancel out with the noise from your pocket.
For most other android phones and for headset on the Nexus One I'm pretty sure that there is only some sort of filter to reduce input of sound that is not speech.
I have done some research on this that I tried to get some help with on the android porting and dev lists. There is a little further info:
http://groups.google.com/group/android-porting/browse_thread/thread/fe1b92065b75c6da?pli=1
With the reservation that I haven't looked at the latest and greatest versions of android.