Yes, you should calibrate with your receiver volume knob at "0" (Reference). Protect your ears while you do this. You probably won't listen to music or watch movies at reference, but you should calibrate at that level. Once calibrated properly, listen at the volume that pleases you.
I use the Video Essentials disk, too. Keep in mind that Video Essentials should be calibrated to 75db, not 85db, as you would with the Avia disk. The instructions on the disk itself should make this clear. Run through the audio calibration part of the disk without calibrating so you have an idea what to do when you do calibrate.
