I was waiting to see if Gonk would weighin on this, as he is the resident 950 expert. But, here is my neophyte answer to the bypass issue.

As bypass basically puts the 950 in an analog mode, you will need to use your analog connections to hear anything in bypass. I'm not sure how you are getting any sound in bypass, if you do not have some type of analog connection to the 950. I personally find that the bypass mode gives a much fuller sound than the digital stereo mode, with more than adequate bass. So, yes, hook the analog out connections from your cd/dvd player to the 950 cd in. Then switch back and forth and see what you like best. Yes, in bypass,as I understand it, everything below 80Hz goes to the sub.