Youmight post your question in one of the pro installers forums (I think there is one on this site). I've read some post's, in a pro installers forum, on RemoteCentral.com (thats the site where I first heard about Audioholics) that mention the use of impedance matching volume controls.
I'm not sure but this may be a solution. As I recall my ohm's law, if you attach two 8 ohm speakers to the same output of an amp, the speakers will present two, parralell, 8 ohm impedance loads. The amp will see this as about a 4 ohm load. This would tax the amp pretty well unless it was pretty powerfull to begin with. Seems like this would definately explain the output level drop inthe main speakers and might also explain the distortion you mentioned.
As I understand it, an impedance matching volume control allows you to hook up multiple speakers to the same output line froman amp but have the amp continue to see an 8 ohm load (it would think it only had one speaker attached). Since you'd be driving two physical speakers the power from the amp would have to be split between them so I dont think this would eliminate the volume drop but could address the distortion issue.
Anyone else know more about these devices? I know they're used in alot of pro installs where speakers are installed throughout the house.
hope this helps.