Onkyo 607 setup confusion

[summo]

G'day all,

Time to help a fellow Aussie haha.

Story goes, i just went out and got my new Onkyo 607 receiver today.

Came home, set everything up. All the speakers work fine, i've got 2 HDMI cables (1x tv to receiver, 1x receiver to blu-ray).

Basically i'm a tad confused on whether i'm doing the right thing in regards to setting up to get the full extent of HD Audio.

I've ran the Audyssey microphone which surprisingly calibrated everything automatically when i connected it.. all i had to do was stand back and let it do it's thing. Only issue is that it's placing all my speakers at the right distances, except for my Sub where it placed it at 2ft, when it's actually around 8ft. (it got calibrated at the sub volume, halfway). I would also like to know if the auto calibration has set the speaker Hz at the right settings. Same goes for the "Bass" and "Treble", they are both currently on 0.

Another thing is, i've read some of you guys talking about "switching HD Audio ON/OFF". Is this the case with the Onkyo 607 aswell?

Below is a camera video i've taken of me scrolling through the settings just to show you guys what's current at the moment.

As much help as possible would be greatly appreciated!

http://www.youtube.com/watch?v=oxELbRiAbFM

Cheers