Congrats on purchasing the 705. If you are new to this site, I'd invite you to read through the posts contained in our FAQFAQ section. As well, you can search this site using key words for what it is you may be trying to figure out. Naturally, you are welcome to ask questions to the other forum members. There are many accomplished X-Terra users who frequent this forum.
In response to your specific questions........
Threshold
I run my X-705 with a faint threshold hum in the background. When hunting in a Pattern mode, if you are running with a slight threshold sound, you will not only hear a louder response when you pass over a target that registers within an accepted range. But you will also lose that threshold sound when you pass over a target that falls within the rejected range. This is called Target Blanking. Target blanking indicates that you are passing the coil over targets that register in a notch segment that you have set to reject. And, if you listen closely, you will learn as much about the site you are hunting by target blanking as you will by what does produce tones. For example, if you are hunting in an open area, such as a farmstead, target blanking will tell you when you are passing the coil over rejected targets. And, that concentration of nails might just be where the house was torn down or the barn burned 100 years ago? If you are using the all-metal mode (zero discrimination), and have set the X-705 for more than one tone, you will hear a low tone on ferrous targets.
Sensitivity
I consider the Sensitivity, Threshold and Ground Balance to all work hand in hand. If you have the Sensitivity set too high, you will not likely obtain the optimum GB setting. In addition to your Threshold becoming instable, a Sensitivity set too high will generate false signals as you scan over varying mineralization. If you hear this unstable sound, you need to evaluate your current settings. For those new to the X-Terra, I recommend setting the sensitivity at a single digit level, until after I have set the proper GB. After I have achieved the proper Ground Balance, I turn the Sensitivity up as high as I can, without causing false signals when I sweep. The easiest way to find the proper Sensitivity setting (in coordination with GB) on the 705, is to use the Auto GB function, or use a tracking mode.
Volume
I keep my X-Terras at full volume on both the setting for headphones and the setting for use without headphones. If it is too loud with headphones, you can adjust the sound (to your hearing) with the volume controls on the headphones.
JMHO HH Randy