Originally Posted by Jeepndoogs
The front speakers actually have oval ports on the bottom facing forward. Do you think that will still cause issues? I have the, pulled out about 1-2 inches past the wall and entertainment center. I just noticed the pictures are upside down!
I think that Adam's right about pulling your speakers out of the alcove. I have seen that cause problems before. There are really two problems. First, mid and high frequencies radiate outward from the drivers in a cone shape. So, some of those sound waves are hitting the side walls of the alcove creating distortion.
Second, mid-range and lower frequencies, especially below about 500Hz, radiate somewhat omnidirectionally, and most speaker cabinets are thinner in the back. So, frequencies radiate backward hitting back and side walls, of an alcove, and creating first reflection issues. Audyssey will try to EQ early reflections, but the results can be erratic sometimes.
I also like Adam's suggestion to try to find a way to get your center channel under the TV and pointing-up slightly. It isn't that you don't have it pointed toward your ears. It's also that sound from that speaker is reflecting off the table, and the floor, in front of your listening position. The table is another first reflection point. (You could try covering the table with something, and that would be a good idea anyway, but I don't think it will completely solve the problem.)
You would really like to have the speaker lower, in relation to your seated position if possible, and not angled quite as much. When you said that you could sometimes hear voices that sounded as if they were coming from the CC, rather than from the TV, that was another clue to that speaker location. Our brains are pretty good about creating audio illusions for us, but when a speaker is up high and pointed down, the illusion that voices are coming from the characters on the screen doesn't seem to work as well.
In addition to the other calibration recommendations you have gotten, I would suggest trying a relatively small microphone pattern. Audyssey usually achieves its best results when we give it a pretty uniform listening area to work with. The further away you get from the MLP (defined as mic position 1) the less uniform the listening area becomes. I think that is especially the case for higher frequencies.
You are really trying to control first reflection points, that are more or less on a line with your main listening position. The better job of that you do, the easier it will be for Audyssey to give you a good mid and high-frequency EQ response. Once you have gotten a calibration you like, it's a good idea to write down (or draw) your mic positions, so that you can repeat that calibration later. An example of a mic pattern that works well for some people can be found in Section I-B of the Guide linked in my signature.
Incidentally, I think you said you were listening with Dynamic volume on. That can help sometimes, when you are trying not to disturb sleeping children, or something along those lines, because it normalizes the volume within a specific loudness range. But, it does that via a form of compression. I believe that you are likely to get better sound quality if you turn that feature off, except when you really need to use it.