SurroundBar, PSW303, Denon AVR 2807 - Setup help needed

Options
Hello all,
After lurking for a few days I have registered and jumped into the forum. Thanks in advance for helping this HT newbie, and my apologies for the long post...

After too much research I finally pulled the trigger and purchased the following setup:

Denon AVR 2807
SurroundBar
PSW303

This seems to be the right combination for HT and Music listening in my Manhattan apartment. My trouble is I cannot generate any sound at an adequate, listenable level from any surround source, never mind neighbor-destroying movie-theater volume levels.

Have used HD Cable SA8300 (Component + Optical, HDMI fried on the unit, thanks TWC) for HBO HD content and have tried both games and Blueray DVD from the PS3 (HDMI). For all sources I have to CRANK the volume on the Denon to between 10db and 2db to be able to hear any dialog. The sub is barely even kicking in. This rig should be shaking at those levels...

From my research I have found the following config:
Set all surround speakers to "small" for SurroundBar, connect PSW via SW pre-out into PSW Line in. I assume my Denon can handle the crossover so I am avoiding LFE input. Is this correct?

Is this an issue with the 4-ohm load required by the SurroundBar?

I assume this is an AVR setup issue and just requires trial and error, to which I am not opposed if I can spare the hours, but I just want to jump in and enjoy these incredible speakers! Any setup/config advice? Thanks!