There were at least two tests done on circular, banked surfaces.
The 1965 one which you saw with the T-28 was done at the GM Yuma Proving Ground with a/c operatedout of China Lake. Pics here:
http://www.chinalakealumni.org/1965.htm
An article in Time magazine seemed to support the idea
http://www.time.com/time/magazine/article/0,9171,842350,00.html
An article in The New Scientist (probably of similar date was a bit more skeptical
http://www.newscientist.com/article/mg19225780.021-circular-runways-for-airports.html
Other references:
a paper by the SAE (pay per view)
http://www.sae.org/technical/papers/660283
paper at the Defence Technical Information Center (PPV)
http://oai.dtic.mil/oai/oai?verb=getRecord&metadataPrefix=html&identifier=AD0617273
a slightly earlier article in Time describes something a bit more.. ummm.. ludicrous? whacko?? -- a tethered landing and or takeoff on a circular FLAT runway!
http://www.time.com/time/magazine/article/0,9171,936623,00.html
Whether it was the same 1965 tests or earlier I don't know but I have seen a C-54/R5D also testing the concept.
Some other comments/doubts I have seen centered around the bank angle, effects of shifting winds, how to determine the touchdown zone, accommodating a/c of various landing speeds, how to transition to the 'flat surface and what happens if you build it and the next gen aircraft requires a larger circle...
Most points seem to have been rendered moot with better crosswind landing capability in large aircraft, and the realization that crosswind landings are not as dangerous with better training and understanding.
As far as FS9 is concerned, it might be possible to define a circular area in a bowl, but not built as a runway as that's outside the framework of the sim. FSX is a bit more flexible about terrain but...
Rob