  We have developed a timing analysis method to determine the distances of
variable galactic X-ray sources based on the method advanced by Tr\"{u}mper and
Sch\"{o}nfelder in 1973. The light-curve of the halo produced by the scattering
of X-rays off the interstellar dust is delayed and smeared by the dust grains.
This method utilizes the differences between the power density spectra of the
point source and the halo. We present the details of this method and our first
applications of this method to the Chandra data of X-ray binary Cyg X-3.
