you will want to set your sub crossover all the way up (like at 200), so the receiver will control the final setting.
you will also want to set your main speakers to "small" and work between 60, 70, and probably 80 Hz to find which gives you the best sound.
I'm not completely sure about the DTS issue, but this is a possibility:
you might take a good look at the display. There are two places THX can show up. see page 9 of the manual. autodetected DTS or THX will show as item 1 on the display (for the decoder indicator type), and selected THX will show in item 17 (for the selected DSP). you can have a decoded DTS that is played with the selected THX DSP.
If you are getting sound when you set a DVD to DTS from the DVD menu, the receiver is translating something. DTS is auto-detected, while THX can be a setting you choose. You can detect DTS, but can have most of the DSP's to what you set them.