My parents are looking at doing a HT setup. They only want tiny satelite speakers, so couldn't get them to go for Axioms. I think I have them convinced to go with the HSU package.

Now we're onto receivers, which is where I'm looking for some advice. They don't have Blu Ray yet, but will be getting a player in the future, so I want to receiver to support all of the new audio formats. Other than that, keeping the cost down is probably the biggest concern. They have a 55" Sony A2000 TV, a DVD player, CD player, maybe a VCR (don't know if it is hooked up still) and that's about it, with a Blu Ray down the road. I doubt the number of hookups available on the receiver will be an issue with their limited number of things they are connecting to it.

I believe the Onkyo SR606 supports all of the new formats, but I want to see from other people what else is out there.

Will the 606 work? ($320 on Amazon) Are there other better/cheaper options that will support the new audio formats? I'm trying to future proof them as much as possible while keeping the cost down as well, as they want to staying under $1000 for everything (including cables), and they won't be upgrading what they get, probably ever, as their current receiver is a stereo one that is about 20 years old.