I was going to suggest the long wall placement, but it sounds like you've discovered this already. A room with lots of reflective surfaces can cause the sound to harden as the volume is increased, so you want to get the speakers away from walls as is practically possible.
For the bass issue, try moving the speakers closer or further away from the wall a couple inches at a time.
I have that "20-bit" KOB issue, and it does have a lot of distortion. Maybe someone can comment on the gazillion other KOB reissues.
As for hiss, it sounds like your system is just letting you hear what's on the recording. You might experiment with your tone controls on these recordings.
For the bass issue, try moving the speakers closer or further away from the wall a couple inches at a time.
I have that "20-bit" KOB issue, and it does have a lot of distortion. Maybe someone can comment on the gazillion other KOB reissues.
As for hiss, it sounds like your system is just letting you hear what's on the recording. You might experiment with your tone controls on these recordings.