Check out the JVC RX-D702B. Offers video up-conversion to HDMI for all of your video sources, and is considerably cheaper than any other receiver that does so. That said, I've never used it, but if I had to buy one today, I'd probably get that one for that feature alone. Also includes wireless connection with your PC to play music, which sounds pretty interesting. I don't know if it would be as good as a squeezebox or something like that, but it'd be a fun feature to have. Don't pay attention to the list price on the site. Can be found within or near your price range.

On the downside, the remote looks like complete crap, but you could fix that with a Harmony or other aftermarket remote.