I'm not familiar with the Yamaha RX-V661, as long as it's capable to accept multichannel PCM through HDMI and apply it's effects and eq to it (if desired) then yes it would work.

About blu-ray players I can't say since I haven't tried any of them; I currently use a ps3 to watch my blu-rays.

I'm sure somebody else will chime in with some good recommendations though... Anyone? Bueller?