If you're using a digital connection then your receiver's BM will take effect, but with the analog m/c the player BM will take effect and I would leave the speakers set to large. Since you've checked all your cables and found nothing was loose, than check the ext in. levels on the receiver and select the highest setting and for me that +15dbs which helped some.
PS: I hope you solve this and start enjoying you BR player.
Regards, Bill
Here's what Harman Kardan support said:
"I'm sorry to hear of this problem. If you connect the front
left or right analog out from the BluRay player to the sub in on the 6
channel direct input of the AVR146, do you get audio from the sub? You
may need to reconfigure the front channel outputs for full range if the
BluRay player has bass management or crossover control for each channel
output. The idea here is to see if the issue is with the sub out on the
BluRay player or the sub in on the receiver. You can also test this
with a stereo analog output from any analog source product."
I'm not sure what all this means...I'm no audiophile, but I'll play with some other settings and see what happens.