B&W Speaker Score!

Dastro - You undoubtedly got a great deal on those speakers but I'm really perplexed as to why they are sounding so bad for you.  I'm very familiar with the 802s so based on your assessment I immediately suspected that they were being underpowered so I looked up your amp (that I'm not familiar with) and it's a beast and should be completely up to the task.  One online review literally says "The S/500 simply dominates any speaker it drives." which is exactly what the larger nautilus speakers require.

Given the combo of that amp and the 802's, your pant legs should literally be flapping in the bass at high volumes.

So I wonder what's going on?  I would think that placement would have some tangible effect but not so dramatically that it would cause the problem that you're describing.

If possible, you should try to verify that the LF crossovers are OK.  I once drove my 800s so hard and for so long that the massive resisters on the LF crossover boards literally melted down and the whole units needed to be replaced (thankfully B&W stocks and offers these to the end consumer).

Sounds to me that there must be something wrong with the 802s.

Hopefully you can investigate and solve the problem- even if you need to invest a bit more in them, you're still ahead of the game if you can get them sorted out at the price you initially paid.

Greg

Dastro - You obviously know what you're doing and you are totally correct that with bass filter that you're going to get more perceived extension out of your matrix speakers - which it's great to know that you love them so much.

Perhaps in the end the 802s aren't for you, but a couple more things to look at assuming that you've completely ruled out any obvious defects (and I agree that the dented tweeter will have little effect).

Have you checked that the transit lock screw is off and that the midrange drawbar tension is OK?

Are the midrange center plugs tightened appropriately?

Are the bass port plugs in?

Finally - are you sure that they're adequately broken in (perhaps the original owner never used them)?

In the end, even if you prefer your s2's, you might consider keeping the N802s considering what you paid and went through to acquire them.  Either way, it's a bummer that they're not "singing" to you.

Greg