Thank you all for the replies
I am not using any external equalizers. In my main unit (an Onkyo DVD receiver), which provides 6 channels of pre-amped signal to my separates, I set both bass and treble to +0db, so I am running flat. I am extremely happy with that, and the sound is amazing.
I played around with the settings some more and noticed that by internally boosting the signal to center and surround channels in two stages, the noise level from the Yamaha considerably decreases.
In my main Onkyo receiver, I can choose the db levels for channel equalization. I can do the same in the Yamaha. So, I boosted center +5 db and surrounds +8 db in the Onkyo. In turn, I boosted center +10 db and surrounds +10 db in the Yamaha as well. This lets me dial down the Yamaha volume knob considerably, and the music sounds much richer and clearer, with hiss as good as dead from a listening position (unless you stick your ear into the speaker).
Can someone please explain how the channel db equalization works and why boosting in my case results in less noise from the Yammy? Does this say that the volume pot on the Yammy is causing something bad to happen?