1. Is it typical to not get any sound till I turn it up to around -40db? Should I be able to actually stand listenting to +2db? on the volume knob. I assumed this would blow me away.
-40 dB is a LONG WAY from the maximum output of the receiver, so yes it is normal. You really need to calibrate to make sure the channels are all level - either using the auto setup or manually with the internal test tones and an SPL meter.
2. I have played several DTS dvd's and I have the input set on auto on the 4306 and it will not play them in DTS, its always PCM...is this a big deal?
It's a big deal if you wanted to hear the DTS soundtrack.
Most DVDs default to either the DD or PCM soundtrack and you have to manually select the DTS version from the DVD menu (disc menu, not player menu).
I suspect however that is not the problem. More likely you have the players output set to PCM instead of Bitstream. If you are using a digital connection from the player to the receiver, the player is set to bitstream, and the receiver is set to Auto, you should get DTS sound if you select the DTS track from the DVD menu. The receiver's display should then indicate that it is DTS.