Find a way to get a Denon 3805 in your price range. I'm very happy with my Harman Kardon AVR 230 (don't be fooled by the very conservative Watts Per Channel ratings - HK receivers have plenty of power), but wish I had the video upconversion of the Denon 3805.
As for the TV, if that is a Sony WEGA LCD screen it is the best picture out there. Every store my wife and I went into we could look around and pick the best picture and that was what we picked. One problam with them - get the warranty - to include bulb replacement. Sony has had problems with the bulbs and although you are covered for a year under the Sony warranty, when my bulb burned out (after 3 weeks) the bulbs were on backorder and it would have taken several weeks to get the new bulb in from Sony. At that point Circuit City said "Since you purchased it, the price of the TV has dropped $150 - we'll apply that to the 4 year service contract price of $399. So your choices are 1) wait until the bulb comes in from Sony, or 2) Pay $249 and have somebody at your house within an hour (on a Sunday) with a replacement bulb from another manufacturer - and you can know that any other problems like this will be solved in your home on the day of the call (if possible) for 4 years. Needless to say, I coughed up the $$$ and the replacement bulb has lasted 8 months so far...
