| The starting with everything neutral or 'flat' is quite good advice - you'll hear the actual, unaffected tone and should know what to do with it to correct it if it's wrong. However, I would go a step further and say don't buy an amp/cab unless it sound right, or close to correct with all the dials set to neutral. If you have to crank the eq to get a good sound, you're not going to have much wriggle room to adjust for different environments. If it sound great flat, you don't have to tweak it much to get a good sound everywhere.
I tip I picked up years ago regarding effects is set to what you think sounds cool, then back it off by about half. This is more 'mixable' effects such as modulation, reverb (esp reverb!) and delays. They might sound great in isolation in your practice room, but start playing in a band with the same saturated settings and it'll turn to mush and you won't hear the effect clearly. Back off a little and the mix will clear up, and you'll hear more!
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