I can confirm that the R07 does not have a line in mode. It can, however, record at a very low input level. I recorded Neil Young with Crazy Horse this year with 4060s (CS HEB) and I believe I had the input set to around 3 (I can’t remember for certain but I believe the max input level is 65). My guess would be the mics can’t handle the split you set the record level correctly.
Perhaps it would be possible to see if you can record your stereo at a moderate volume as a starting point, and then gradually increase the level to see what point the distortion starts? At least this would tell you if the mics can record well at moderate levels or if there is something else going on.
You should not, as gutbucket pointed out, use the 25 setting without checking the levels. I suspect that would clip my 4060s in any rock concert setting.