Darkpaw,
That is some very nice work!
I am glad to know I am not the only one unhappy with my sound system. Sadly I do not posses your audio skill set, so I am planning to take all this information, including the 2 videos of your analysis of the sound system to my professional audio installer and tell him, "Fix this!" I know your project is still underway, but I think I will start in stages, the audio controllers as a gift to myself this Christmas, and following your progress. I am looking forward to hearing how your upgrades evolve.
Thanks for sharing all your experience and insight!