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Check out audioholic's review for the Yamaha YSP-1, I can't link to there page, but go to there website and check under their "Entry-Level $3000 Budget System" I've never heard it, but audioholics loves it: "We decided that at this price point, one of the best possible systems could be had...

Try using a different cable for your sub. I don't know the math, but different length wires will pick up specific frequencies. You might also try wrapping the cable up or something to shorten it, I'm not sure if that will do anything though

Your reciever does have both types of S/PDIF connections, coaxial (looks like an RCA connection) and optical (hard to describe, there would be a cap on it that would pull off). Using one of these inputs would let you send DTS or whatever surround sound format you want. If your sound card doesn't...