impedance switch
I have the same impedance switch on my Yamaha (an RX-V750), and had the same question. My Def Tech speakers are stated as being "compatible with 8 ohm impedance settings", but have a minimum impedance more like 4 ohms.
I saw in a Yamaha review someplace that the lower impedance setting of the switch basically selects a lower voltage tap of the output transformer, thereby reducing the peak current that can flow into a lower-impedance load. This may help to prevent over-heating problems, but it also means that clipping occurs at a lower power level. In fact, in the review I saw, the output power into a 4 ohm load was (as expected) twice the output power into an 8 ohm load, with the impedance switch set at 8 ohms. But, with the switch set at 4 ohms (and the load at 4 ohms), clipping occurred at a much lower power level. My conclusion was that you are best off using the 8 ohm setting for any speaker, as long as you are a little watchful of the receiver getting hot (like really cranking all channels). I would certainly use the 8 ohms setting if you only have a single set of speakers connected to the front channels.
If it's any other comfort, I asked the same question via an e-mail to Yamaha tech support, and got the short reply to "use the 8 ohm impedance setting - it will sound the best".