First off, congrats on a fine receiver there!
I believe that the S-7800 was a 40w/ch receiver, and I'm not entirely sure if that was 'true RMS' watts or what the measuring method was. How efficient are the speakers you are using with it? Also, position of the volume control has nothing to do with the output of the reciever, just the taper (rate of attenuation) of the control. Does it ultimately seem to get to reasonable volume levels, appropriate of a 40w/ch receiver (regardless of the position of the volume control)?
Agree that the first step has to be cleaning pots and everything else you can. I was just working on what I thought was a nice, clean, fully functioning receiver when I noticed that the loudness button didn't seem to do anything at all to the sound - uh oh, all sorts of exotic ideas came to mind as to what might be the problem... Otherwise, the reciever worked fine. So, I opened it up, took off the front panel, sprayed with cleaner, worked the controls, sprayed with more cleaner, worked everything some more, and did it all a third time for good measure. Problem solved.
The 'hush' control adjusts the muting threshold - at what signal level the FM will unmute when the FM muting is on. The 'preamp' control, I believe, adjusts the level of the phono input (to match it to your other sources).
If after cleaning, the level still seems low, then I'd suggest starting down the troubleshooting path...