Well if you feel that sound was good without Audyssey then go for Manual settings ...Nothing wrong in that.(For Manual settings u may require a SPL meter to do it for best settings ,In case if the manual settings which u have said was good to hear then leave it as it is,finally your are the one going to enjoy it).
Audyssey is good ,but some times it may give improper result because of many reasons. It may give best result if u place the speakers at the appropriate locations recommended for surround setups spec and the room has good acoustics . Audyssey also have +ve & -ve.
Still if u prefer to use Audyssey ,try the below..
From the photo ,U r center channel can be raised little bit higher ,or else slightly tilt it above so that it will match your earlevel.
- Place the Audyssey Mic at Ear level ,(Take measurements for Only for ur seating position -Middle ,Right & center couch position ,skip the rest of the locations.)
- Keep Dynamic .EQ on and Dynamic Volume in OFF.
- Check the results of each speakers ..If audyssey make the speakers as Large -set it to small.
- The crossover settings for all speakers shall be 80hz - U can toggle it and keep the best.
- The subwoofer -LFE settings shall be kept to 120 Hz.
Also try sub crawl for optimum placment of subwoofer.
Best of luck.
Thanks for such a detailed response. Manual settings are good, however I am facing the issue that if I want to hear the dialogues clearly I need to raise the volume and at that volumes, the effect sounds are becoming too loud. I have calibrated to 75db using SPL meter and kept the center channel 1.5 dbs higher.
I was doing the Audyssey calibration as you instructed itself. Only I was using all the positions.
I will try to tilt the center channel as instructed by everyone.