Quincy, check the switches for line/guitar as suggested above as well, that will make a big difference in levels.
In terms of your efx loop, i would guess that you can set a switch to go from serial/parallel or maybe it hard set that 1 is serial and 2 is parallel but you would need to find that out from your owners manual.
in general a serial loop will run your full guitar signal through the efx box. Then you control the dry to wet mix at the efx box. If you run into a parallel loop, the amp passes the dry guitar signal to the power amp as well as the guitar signal to the efx box, and then you mix it in at the amp. So the efx box would be set to 100% wet, much like a mixing board.
some people prefer one over the other and it all depends on how you want to run your efx. If you have any efx where you want 100% efx sound, then going serial is probably better. Example would be a Pitch Factor using the whammy guitar setting. You want 100% of the guitar signal going through the efx.
hope that helps,
sean
