Yes, I am running all speakers as large and am not crossing anything over because I don't have a sub yet. Oh wow, I just realized I am sending everything to the center and surrounds. No wonder there wasn't enough dynamic headroom in the receiver to handle the afforementioned peak (explosion in the DVD).

Dunce Disclaimer:
I just got my Axioms last Friday and before that didn't even have a center channel. It's kind of funny as it is all coming back now. I did all the research about small/large and crossover settings when researching receivers 2 years ago. I guess I had forgotten all that until I read your second reply. (End dunce disclaimer)

I am going to set the center and surrounds to 'Small' and then set the crossover to 60hz. I will keep the mains set to 'Large' for the time being and will play with that setting once I get a sub. I imagine that will do the trick. If not, I will cross the receiver at 80hz and see what happens.

Thanks for your help.