John,
Thanks for the tips. I will try the M80s tonight and see how they sound a normal volume levels on the 777. I am most likely going to return the 805 and save my money for a dedicated processor. There are other issues intrinsic to the model aside from the "real" problems I've discussed here. I don't relish the fact that it runs at a pretty high temperature, plus a ton of users are experiencing loud pops when switching amongst audio streams via HDMI. Initial research indicated this was an issue only when connected to a PS3, but I can replicate it with my Toshiba HD-XA2.
