Quote:
If I leave all four Monitor 10s set to LARGE, then I will only be sending the LFE (.1) channel to the PSW10. If I choose a stereo source (FM, CD, etc.) then no signal will go to the sub. This arrangement produces more punchy bass effects in surround modes but I detect no signal in stereo mode or 5.1 DIRECT.

You understand correctly. There will be no subwoofer output in stereo mode (because no .1 channel and no bass management) and the 5.1 DIRECT input is an analog pass-through with no bass management.

Quote:
If I set all Monitor 10s to SMALL, then all of the bass below 60Hz plus LFE go to the sub including surround sound and stereo inputs, but not from DIRECT inputs.

That is correct.

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Am I understanding all this correctly?

You are. One thing to consider is calibration - have you adjusted the speaker levels with a meter? Might you need to tweak the subwoofer trim a bit?
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gonk
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