I purchased the set a couple of months ago, and so far have loved the sound of them....purchased a new Yamaha receiver to replace my other one(wanted HDMI sound) and I was watching Band of Brothers Blu ray...and there are times in the battles where the sounds become muffled, or over modulated...but others it is perfectly clear....I am wondering if it is supposed to sound that way? Details as follows

Quintet III speakers
V563 Yamaha Receiver
HDMI
BOB is encoded in DTS (other movies I've watched in Dolby 5.1 have sounded fine though)
Sending it from my PS3 as PCM

Also...if you have any recommended settings for this Yamaha please let me know...I understand most of the settings and have a decent ear at it...but I could always use help from more knowledgeable people

Those are fairly small speaker which may have trouble producing the deep battle sound you are looking for. Within the receivers options you should be able to set the speaker size to small, thus not sending the lower frequencies to your speakers and letting the sub take load off the speakers. This may help clear up some of that distortion you are hearing.

I actually do have the speakers set to "small"...reading on Klipsch's website it says the speakers will produce down to 120....so thats where i set my crossover at....I also have it set on the LFE to "Subwoofer only"........is that the correct way to set the crossover? Or should I set it lower