To the best of my knowledge, the dynamic range adjustment is a dolby digital/dts feature that reduces the difference between the loudest and softest sounds so that when you watch a movie with the volume turned low, you can still hear dialogue etc. clearly. If you listen at normal levels, then turn it off. I'm not sure which receiver you have, but there should be another option apart from mid/max/night (not sure what night is for) that will let you turn it off. Consult your manual for more details.
To clarify a little more, the dynamic range settings only work on Dolby Digital signals (maybe DTS, too, I don’t know). They do not work for regular CDs.
What the mid and max settings do is compress the audio signal to make the overall volume more even or linear. For instance, you may have noticed on DVDs that there is a great difference in sound levels between explosions and whispered dialogue. Usually this is great, but if you want to listen late at night while people in the house are sleeping, you would be running your volume control up and down.
The dynamic range compression raises the level of the softer sounds and reduces the level of the loud sounds. This gives a more linear output, so at low volume settings you can easily hear the whispers, and the explosions won’t rock the house.
Sorry Abel, I wasn't reading your post carefully enough. What Neill suggested is right, what you want is the full dynamic range, so yes, Max would be the right setting. Thus, Night would be the equivalent of having the Dynamic Range limiter of the yamaha processor turned on and full, which you'd use when you listen late at night and don't want to disturb the neighbours.
Thanx guys' know anythign about seperates? Cuz no one has replied to my thread called Newbie For Seperates!! If you guys' know, and I think Wayne does, please help me out...