I have the exact same sensation and I also have small ears, but I don't think that is the issue! I don't believe the dolby headphone technology can project the sound in front of you as well as it can do the side and rears. While this bothered me at first when I was analysing everything, after a while I adapted. I found that the immersiveness of the DH, imperfect though it was, still really drew me into a movie even more than my old 5.1 HT did, particlularly at moderate and louder levels. The front soundstage became less of an issue when I stopped focusing on the sound and started concentrating on the movie as a whole. I subconsciously projected the sound forward to match what I was seeing on the screen particlulary speaking voices, if you know what I mean.
When it comes to music I only use the DH with prologic II for surround sound. Two channel DH is not as good as normal two channel headphone.
If you do return it, there is supposedly a major improvment coming down the line from Yamaha next year at a cost of $500. Read through this thread for details, I can't wait.
http://www6.head-fi.org/forums/showt...=109001&page=4