If your center channel is only rated down to 120, I would set the crossover higher than 60. Since the cc can't reproduce it, all the information between 60 and 120 will be lost for the center channel (and potential cc damage?). How low are your surrounds rated? The crossover setting on the 1050 is universal for [b]all[/i] speakers set as small.

As to which input on the sub, I would say give 'em both a try. You may even want to leave both connected. I ended up with the best performance from my sub by connecting both the LFE and the speaker level outs from the 1050. Also, just verify you've told the 1050 you have a sub.

If you set your surrounds so that they match the levels with the fronts from your viewing position, you shouldn't have need to ramp them up any higher. Assuming you have a source which is using the surrounds (DVD player?) find some material with known active surround information and give that a spin to make sure they are being decoded right (we know they function since the test signal works). Could be you have a setting somewhere not right. Make sure the 1050 is recognizing the multi-channel material you're sending to it. Maybe your player's output isn't set to the right format so you're only sending a stereo signal or something. Finally, also make sure your 1050 is set to surround and not just stereo.

That should be enough to get you started looking at things while some others round here come up with the multitude of things I'm sure to have forgotten at this late hour. Good luck! Be sure and report back how it turns out!