I agree with Alan on most accounts. In regards to the sub distance, it says right in the manual that this is a normal outcome. It has to do with the electronic circuitry of the sub. My EP500 is about 15ft away, but the Denon has it at around 25ft. Others have the same experience, and the sound is great.
In my opinion, I would not call the Auto Setup crude. I agree with Alan in regards to the room-EQ portion, I also turn that off. But, the distance, dB levels, AND phase check are very accurate. I have 4 Qs8's, and have never received a phase error on any of my speakers. I tested the Denon's ability for checking the phase by letting a stray wire from the negative terminal touch the positive terminal on the back of my AVR. I then received the same message you did. It is possible that you have all the positive/negative wires correct, however, one wire strand touching the wrong terminal on the AVR OR speaker will give you this message. The speaker terminals on the back of the Denons are so close togethor, it is likely you just didn't see the crossover.
I don't think it has anything to do with the quadpolar design, or others would complain of the same problem. There are many Denon owners with Q's around these parts.
