My sister and brother-in-law are looking at getting into surround sound and also just need more HDMI inputs. The TV I gave them (one of the bulky 32" Sony CRT HDTVs) only has one DVI-HDCP input, so right now they have the PS3 hooked up to it. Rather than just get an HDMI switch, they want to take the opportunity to get a new receiver. They're looking at this one:

http://www.newegg.com/Product/Product.aspx?Item=N82E16882115197

What would your recommendations be in that price range? Because I'm a bit more extreme (stupid?), receivers in that range are rarely on my radar. Does that seem like it would be fine, or is there something more compelling out there? I'd appreciate the input, and I'm sure they would, too.

I'm not sure what they're going to do about speakers. I mean, he has some, but I think they're just some small JBLs. They don't have much money to blow, so I may buy some for them. We'll see.