Thanks for all of the suggestions guys - very helpful indeed!
Here's a bit more info for those that asked: I am currently using a vintage speed king pedal (felt beater) with low spring tension and I have both drum heads tuned up fairly high (with the reso the higher of the two). I have a felt strip along the bottom of the batter head for muffling.
As some of you guys pointed out, I think my problem is that I am digging the beater into the batter head. I play heel up and really need to pay attention laying off the pedal. Im going to experiment with beater tensioning and length, head tensioning, and finally I'm going to give heel down a try for a while and see how that goes. Lots to experiment with and work on! Its always fun though, especially with this kit!
Thanks again guys Bowing