Alright, the results of the caps are in:
I fed a white noise source through my modded GE-7 (see above) to test whether the frequency bands were really messed up or not. I used a couple of laptops and Adobe Audition's Frequency Analyzer. You can draw your own conclusions, but I figure my cheap-ass meter is no good. In the left hand side column is the white noise with each slider on the GE-7 down (frequency CUT). The 100, 200, 400, and 800Hz bands are fuzzy, but you can definitely see a reduction in frequency there. Now the 1600 and 3200 bands are interesting: the 1600 labelled band is actually very close to 1600 (approx. 1570-1640) however, the 3200 labelled band is more like 3400Hz - 3200hz falls way to the left of the center of the "dip". The last one is the 6400hz cut, and as expected, it's just a simple high cut filter. BTW the x-axis shows 0-11Khz in log form.
On the right is the sliders up for a frequency BOOST. Again, the 100-800 ranges are fuzzy, but the 1600 and 3200Hz labelled bands are clear... and as expected, they line up perfectly with the "cut" ranges. 1600 is close (1550-1670) while the 3200 is way off (3400-3600).
It's not shown on the graphs, but the last slider (+/-15dB overall gain) is pretty close - the y-axis on the graphs each represent 12dB of volume.
On the whole, IMHO everything is close enough for rock n roll... I bet everyone here can tell the difference between a guitar note at 3200Hz and 3400Hz, but can you tell the difference between a boost/cut at that frequency? If you can, congratulations, you have better ears than me!!