Sam, just a couple comments. As you've seen, even the manufacturer isn't in complete agreement on the relative settings for sub level on the receiver and on the sub. Whenever you get properly balanced so that the sub isn't drawing attention to itself, my thought is to have both controls at similar levels, not one high and one low. Another point: even better than setting the sub crossover at the 120hz max, since your SVS has a crossover bypass it should be used.

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Enjoy the music, not the equipment.