Gonk,

I have a similar question. What does the channel level need to be? Currently, my secondary DVD player, a Pioneer DV-45a used for DVD-A and SACD, is set to 4.0dB, with everything else set as you mentioned above. The channel level range is 0.0 - 6.0dB.
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My System:
Sony KDS-55A2020
Outlaw Model 990
Krell KAV-500
Oppo DV-981HD
Philips DVDR-3400
SVS 20-39CS
Parasound HCA-2003
Dish VIP-622 DVR
Monster HTS-3500
Von Schweikert VR-2000/LCR-20
PSB Century 400i