I think I got it guys. Phillipacamaniac was right on the money.
I'll start with the other gear - I'm using Yamaha HS7 monitors with the volume at noon (+4). Now with the AX8 plugged right into these with it's volume at noon (30%) everything is plenty loud. That is probably what threw me off a little when you change that setup and put a mixer in the middle.
When you bring the mixer into play turn the AX8 main output to 100%. Yep - would be crazy loud direct but it works out here for a low signal to noise ratio. Next, I am going into the AG06 channels 3/4 in stereo. Push the gain button in to set it to low. Finally set the volume for that channel to 3 o'clock (there's a darker dot in that position and the manual says that's where it's supposed to be for good strong signal).
After that take a look at your sig and peak meters. You should be lighting green (with normal strumming) and peak only on hardest strums. If you've got that you are getting a clear strong signal and you are good to go, then ease up your monitor volume until it is where you like it. For me that was about 1 o'clock.
If you are peaking too much, don't touch the mixer settings but rather bring down the volume internally in the AX8 (again not the output, leave that at 100%). Use the amp blocks mixer volume.
I feel now I can look directly at the mixer and not even need to look at the AX8 vu meter when adjusting volume. With all this in sync.
Anywho I'm no pro but everything seems great now. Hope this helps you. I may not be 100% right on all this but seems good.
Now if I could just figure out how to master in garageband.