DV7 w/ Beats.. sound compression?

I just purchased a DV7 with Beats audio, and audio quality was one of my motives for choosing this device.
Audio through the headphone jack is respectable. Very strong output.
Audio through the internal speakers and subwoofer? Absolutely disappointing.
The speakers themselves sound great for a laptop, but something (I am confident is software related) sounds like it is compressing all of my sound. When a "loud" treble sound is played (such as a cymbal), the volume is instantly drawn back as if to protect the speakers or something (which only a purpose built subwoofer would ever need such protection). At one point, I was listening to a song and it sounded like I was standing underneath a helicopter, it was that agressive with cutting sound. It literally hurt to listen to! Unacceptable.
Let's go through what I've tried already:
1) Trying a different audio source:
I thought it may have just been Windows Media Player (which has all "enhancements" disabled). I loaded up Grooveshark.com in Internet Explorer and it sounded the same.
2) Turn off any Windows sound "enhancements:"
This was the first thing I checked. I was certain that the "loudness correction" filter was enabled. But sure enough, it wasn't.
3) Windows Tone Control:
This was new. I've never seen this control before. Because Beats assumes everyone wants max bass and treble, they are default full boost. I reset them to zero hoping that it would solve the "choppiness," but it didn't. The sound quality did improve, though.
4) Update audio drivers:
I went to HP, downloaded and installed the audio driver recommended for my particular laptop, and this didn't help either.
5) Uninstall IDT audio controller:
I thought maybe IDT was responsible for doing it. Nope. Same hat.
6) Reinstall IDT (Beats) audio controller (same driver as #4):
Now I'm back to square one.
Here is something of particular interest:
This time around, I tried playing with the "Beats" IDT equalizer, and nothing I did changed the sound. I went full highs boost to full hughs cut, and it made no difference. That tells me something is either "masking" my sound trying to make it sound "right" (which is actually atrocious), or is completely bypassing the "Beats" IDT controller. The problem is, I have no idea what it could be.
For a laptop marketed towards the audio enthusiast, it completely misses the mark. Sound compression is one of the worst things you can do to sound quality!
Also, this Beats audio thing is a gimmick. Just a rebadged IDT audio controller, and fn+b only boosts or cuts the "bass" setting in Windows. I can't believe this is called a laptop specialized for audio. My old DV4 has much better sound as of right now. How can the Beats people call themselves audiophiles?
I apologize if some of this sounds harsh, but I am very frustratingly unimpressed with the audio aspect of this laptop, which I specifically chose because it promised exceptional audio.
I love the rest of the laptop (save for the touchpad which I'm still getting used to), but if I can't even listen to music on it like I had planned, I may as well return it.
All suggestions are greatly appreciated.

Hello all, this is not a problem you can fix this easily with some fiddling.
try this modification, originally intended for Envy with Beats, its still modifable to fit your brand and you should be getting similar effects with loud noise.
http://forum.notebookreview.com/5668647-post3614.html
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