There can be cases where the sub calibration is an issue. I'd suggest setting the subwoofer trim in the 970 to at least 0dB (or maybe even a few dB higher) and turn down the gain knob on the ASW650's amp if necessary. This will help insure that the signal coming to the sub is high enough to trigger the auto-on circuit. You'll also need to wait for the 970 to generate a signal for the sub, of course (either an LFE track on a 5.1 source or material below 80Hz) - sometimes that will take a while. As you may already be aware, you can use a test tone disc (my
Devious Tiny Disc would work if you don't have something like AVIA or Digital Video Essentials lying around) or even the 970's test tones to produce something that will suffice for this.
The 970's bass management switch only affects the 7.1 Direct input (offering either no bass management for that input, an analog 80Hz crossover network, or digital bass management). If you are using that input (for DVD-Audio, SACD, or one of the new HD formats - HD-DVD or Blu-ray) and 80Hz crossovers work well for you, I'd recomment the analog 80Hz setting (labeled "LPF/HPF"). If you aren't using that input, you don't need to worry about the switch.