Folks, there is nothing **inherently** problematic about running the sony m10 (or any other digital recorder) below a certain value.
Well.. The Edirol R09 caused distortion when run at gain settings below 8. The distortion became progressively worse as the level was further reduced. It was something I first posted about many years ago on TS. There were quite a few arguments about it, with some emphatically stating that it did not have the problem. But all R09's do.
These are typically black boxes in regard to how they add and attenuate gain. Whether that occurs in the digitial or analog domain.
Considering that the m10's knob gradually mutes the signal to nothing, it is entirely likely that issues arise when it is reduced below a certain point.
Only careful testing can validate the optimal performance envelope of a piece of gear, and especially a specific gear combination.