Hi Anthony. Welcome to HTF!
Let's go through this:
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I will build the speakers myself, matching the OEM speakers as closely as possible.
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Dont.
It's more important that you try and create 3 identical front speakers for your home theater. Do NOT try to match the specs of the original speakers. Make good speakers and most good receivers will drive them.
Surround Mode/DSP Mode/Sound Mode Menu --
Ok, There are 'tricks' that a receiver can do to play with the sound. Some are kind of gimicks, others can actually make the system sound better in your room with your speakers. But it's like spices - you use them to YOUR taste. Play with them and decide if you like/dont like them.
How they 'contribute' is kind of like a cookie recipe - they dont tell us. They just give you lots of options to play with.
LFE (Off/ATT 0/ATT 10)
The unit was likely designed to have a self-powered subwoofer. If you dont, you set LFE to OFF. If you do have a self-powered sub, you can choose ATTenuation 0 or ATTenuation 10 to get the sub to create a pleasing amount of volume.
D.R.C Mode, (Off/Low/Mid/High) What is this?
I think DRC is Dynamic Range Compression. Typically you want to leave it off.
Some people hate when a movie has huge swings in volume. The receiver will perform a 'trick' and keep the volume in a narrower range. "High" compression means keep the volume swings small. Mid/Low allow the volume to swing more. Off means let the movie sound swing as the production studio intended.
"FRT SP/CTR SP/SUR SP x.x m"
I think this allows you to tell the receiver how far away you sit from each speaker. This will change a small time-delay. It's not a big thing so dont worry much about it.
This is also a Dolby Digital/Pro Logic/DTS Decoder.
You want to leave this set to Dolby Digital. But when you insert a DVD, make sure to go to each disks "Audio Setup" menu and select the 5.1 sound track. (The default for most DVD's is ProLogic).
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since i do not have speakers as of yet i cannot tell how it will sound when certain settings are changed..
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It will become clearer when you hook some speaker up.