johng,
I hope this isn't too late to give some input.
I just went shopping for my new receiver today. I was looking a little beyond your price range, and basically went into the local AV specialty shop targeting the Denon 3802. For substantially less of an investment, the salesperson suggested I take a listen to the Arcam AVR100.
I had tested a Denon against other receivers on the market (6.1 models by Sony, Pioneer, the Denon 2802). I thought given the features, performance and reputation, Denon was the way to go.
I was dead wrong. After listening to just three songs, I picked up the Arcam as a hands-down winner. I'm not sure what its "street price" is in the U.S., but it was $200 Canadian less than the 2802 (never mind 3802), and completely embarrassed the Denon 3802 to boot (complete with DPL2, component switching, 7.1 outputs). You may be able to find it for only a few dollars more than what you had targeted to spend.
After an evening with the AVR100, my Axiom bookshelf system (M3s all around and VP50) came to life...I'm talking the room FILLED with music (Diana Krall on DVD) AND sound FX (Phantom Menace). What a difference over the Sony I was using!!
The DVI vs. FireWire problem relates to HDTV, which in and of itself has not proven to be a big deal unless you REALLY want to stare at Mimi's rolls of fat in high-definition detail on the Drew Carey Show. Just ignore it, since your next TV will have whatever inputs it needs to handle HDTV signals, and by the time Hollywood picks an input, there may actually be HDTV worth watching.
In the meantime, make your HT setup about the SOUND first (heck, that's why you're buying Axiom, right?). Give the Arcam a listen. You won't regret it, especially not with your MAGNIFICENT choice of speakers, BEGGING for quality amplification.
