> Last night I moved my front's closer together. I think this did the trick
I am doing similar thing in a similar setup. M60's don't like to be standing close to the walls on their sides. In the movie setup I have to push them out not to obscure the screen. When I am listening to the music I usually bring them half a foot or so into the room which improves the transparency and removes hard localized left and right focus.
Also make sure you have the volume calibrated for every surround mode separately, most recievers will let you do that. As for your height question, the bulk of the audible sound comes from the bottom of QS8's so putting them 2 feet or so above your ears is important. As for the M60's in the front they are probably far enough from your listening spot so their height should matter very little.
Axiom Setup 
