You need to run YPAO so it can set the levels. Unless you do that manually with an SPL meter. You can always check and adjust distances later.
Not sure why the surrounds are tinny. Did they sound tinny with the QS8?
The sub phase is very location-dependent. There's a manual procedure to optimally set phase. You need an SPL meter and an 80Hz test tone. You play the tone on the M100 only, note the reading and then play just the sub. Adjust the phase so the sub reads the same as the M100. That's it.
Your 1500-3 is over-kill for your setup. You really need nothing more than a 1000-3 because your fronts are quite sensitive.
I would not get the Parasound in your case. I would get a receiver like an Anthem. It incorporates amplification that you can use for the surrounds. Most awesome is the ARC EQ built into the Anthem. You also get a high quality microphone unlike your Yammie. You run those measurements RJ, and I think all Anthem owners on here will tell you that it's gonna sound like a Sorcerer worked some magic on your set-up.
There may be other, similar options to the Anthem that I am not aware of. I know though Anthem owners are very happy. And they are Canucks to boot!
You may want to think about getting a 1000-4 for your surrounds at some later stage but I really dont think you'll need it with the Anthem for your room size and speaker distances.
