We run our engines (four of them) at 6 to 7 quarts. At lower than 6, we add a quart. They'll go ten hours or so till they need another quart. Same goes for every Lycoming I've run.
I would NOT run one of these engines at 5.5 quarts at the START of a flight. Point is, the minimum for FLIGHT is 4.5 quarts. IF you start at 5.5, you're mighty close to the minimum approved for flight.
Every Lycoming I've ever owned or run for a living (and that's upwards of twenty five or more) has been very happy at seven quarts, with another quart added when it gets to 6. That is also the procedure recommended by Lycoming in their Piston Engine Service School, which I've attended.
The oil consumption you describe is certainly within the limits prescribed by Lycoming for their engines. You can search the Lycoming website and look for their publication "Key Reprints", here:
http://www.lycoming.textron.com/support ... index.html There is a tremendous amount of information in that online publication.
Keep putting oil in it, and fly it.
MTV