Thanks for all the responses! Here's the background and what I'm looking for in lotsa details:

I need to upgrade my Yamaha RX-550, which I've had for almost 15 years. The selector knob is starting to short out in one channel. I was hoping for something at bare minimum comparable to what I have now, and I was expecting to find much better quality and more audio features available now. My early investigations make me feel as if I'm in a time warp; stereo receivers (apart from the home theater aspect) don't seem to have improved much in 15 years, and in some ways, lost ground.

My RX-500 has the following: 60W x 2, RMS, **0.015% THD**, 20-20k Hz, 4 audio inputs + phone + tuner = 6 total.

My current audio setup:
1. I have a turntable which I don't use much, but I couldn't bear not having any way to play it.
2. My primary music source is pretty much my computer, which is connected through my stereo as Tape 1. I can play/record into/from my PC as I would a tape deck. This is a critical function.
3. I have a cassette deck which is connected to Tape 2, which I play from and record to.
4. Music Choice (Comcast digital music) cable box and my CD player share the CD input. [It would be nice to have these on different inputs.]
5. I play my TV sound through my Aux. input. (I have speakers in the TV room.)
6. I have one set of speakers (A) which play in my study where my stereo is located and the other set (B) go to a switch box nearby, and split into a set of speakers in the living room and another set in my bedroom. Thus, I have 3 sets of speakers attached to my receiver. I seem to have the power to do what I need, but Yamahas were known for delivering more power than advertised.

Here's what I was hoping for in my new receiver:
1. >= 60Watts of power
2. Comparable THD? (Astonishingly, none of the receivers I've found seem to come close to my old receiver. Most are around 0.080%, which is over 5x worse than I have from 15 years ago. Technology is moving forward, right? What's up with that?!)
3. At least 5 audio selections, preferably 6 or more. Part of this hinges on how "video" components can be used in an audio sense. For example, can I play my CD player through a "video 1" or "DVD input"?? I'd really like to have my CD player and Music Choice Digital TV box on different inputs. I'm hearing from you all that I can.
4. Phono input.
5. 3 sets of speakers. As I explained, I've used a switch box to create 3 set from my 2 connections now, and that works okay. But, nothing I've found so far offers three sets of speakers, but it's a wish.
6. Remote control for everything. I have a universal remote that accesses my receiver and PC, allowing me to control my music from any room. I would like to be able to control bass, treble, balance, and speakers the same way, which I cannot now do. I'm not seeing that the technology in 15 years has made any progress here! Am I right?
7. Bass, treble, and maybe midrange tone controls. Loudness/pure direct unimportant.
8. Rec Out: My current receiver allows you to select what your taping source is so that you can tape from one source while listening to another; is this available anywhere?
9. Price around $500 or less.

I'm not opposed to Dolby surround sound features, etc. But, I need to know what they'll do for me in my situation

Again, my key questions besides the above base requirements (which seem pretty unlikely, all in one receiver) are:
1. What audio uses can a video input/output be?
Explain: Video 1, Video 2, Satellite (?), DVD (= CD?). Can a DVD input be used for a CD or as a (once-named) auxiliary input?
2. What difference will this big increase in THD make to my sound quality?
3. Advantages of a modest home theater or surround sound features for a solely stereo purpose.
4. Explain other specialized functions (XM Satellite ready, e.g.)
5. The Onkyo TX-8522 looks like a top contender.
What do you all think?
a. What's direct tuning?
b. Is the XM input compatible with Sirius?
c. What does the remote control control?

Thanks again!