A system and method provide at least a single stage optimization process which maximizes the flatness of the net subwoofer and satellite speaker response in and around a cross-over region. A first stage determines an optimal cross-over frequency by minimizing an objective function in a region around the cross-over frequency. Such objective function measures the variation of the magnitude response in the cross-over region. An optional second stage applies all-pass filtering to reduce incoherent addition of signals from different speakers in the cross-over region. The all-pass filters are preferably included in signal processing for the satellite speakers, and provide a frequency dependent phase adjustment to reduce incoherency between the center and left and right speakers and the subwoofer. The all-pass filters are derived using a recursive adaptive algorithm.