Ok...this is the first time that I have ran the test tones and it seemed that getting strong output above and below the crossover was somehow wrong. If it is the slope of the receiver, then I shouldn't be worried?
I re-checked settings again: Receiver crossover set to 80hz, all speakers set to small, LFE only outputting to subwoofer. I'm playing the test cd through a samsung blu-ray via HDMI. The receiver is hooked via pre-outs to an Emotiva UPA-5....if that helps.