I think I may have discovered the problem! My processor has 3 optical connections built in which can be assigned to different audio sources (DVD, CD, ETC) Well, after looking into it, my DVD player was assigned to "CD" not "DVD". At first I didn't know if it would make a difference, seeing as the precessing was smart enough to recognize that it was playing a Dolby Digital audio source. (there's a red light that lights up whenever a multi channel source is playing). So, it was playing it, and processing it in 5.1 surround. Well, I tried switching to "DVD", and the sound is much improved! How simple! The system still needs some tweaking, which I'll be doing with some more calibration, but it sounds 10 times better then it did. How silly of me. Thanks everyone for all your imput. A little more calibration and a nice sub, and I'll be well on my way. :^)