A/V Receiver Recommendations Under 800.00

A Friend is looking for an A/V Receiver for a new HT setup. Recomendations please. There Budget for the receiver is about $700 - $800. This unit will probably be paired with Dynaudio Audience 42's front, rear and center with a Velodyne Sub. DVD unknown.
I have always thought receivers offer the best bang for the buck in audio. I also thing a late model "used" receiver takes that premise a big step further.---Know what features you want;do the homework and buy from a seller with great feedback.---Some buy the latest because of new features.---Know what the unit you decide on,sells for; new and used.
With A/V receivers, the feaures are some times as imortant as the sound, I don't think you can go too wrong with an Onkyo, HK or Denon unit. You have to make sure the model you pick has the correct amount digital, analog, S-video, RGB, DVI, or HDMI ins and outs that you will need to feed it.

For example make sure its compatible with the cable box or satelite, DVR, VCR etc. you will be using. Also check what kind of input the TV you will be using it with will accept. Its nice to have your A/V receiver be able to transcode/upscale a compsite (usually VCR) signal to s-video. Anything in that price range should do that.

Also, keep an eye on the near future which will have HD-DVD with 1080p output. I'd hate to sync too much money right now on something that may be obsolete by next year. Look to make sure it can switch a high band-width video signal.
I used to own the Nakamichi AV10. Prior to purchasing it, I compared it with the comparitively priced Denon and Onkyo models. Hands down the Nakamichi sounded better. I have never heard the Outlaw AV amps, but others have said it's a very good sounding AV amp.

Bottom line, audition before you buy.
Two Yamaha models to consider the DSP-A1 and RX-V1 both have the same amps and are under your price range. The RX-V1 just has more features. Both have inputs for adding a multi-channel SACD/DVDA player. The sound is powerful and very good for movies DD and DTS. I have a seperate two channel system consisting of ARC gear and when listening to SACD, I perfer the Yamaha in multi-channel. It might be consider old technology but it sure does it's thing. I have my two HD receivers connected directly to the HDTV because video switching can only be done through the S-video. Other than this the Yamaha's are excellent A/V Receivers.
NAD T743, T753, Sony ES DA1000 (not DA2000)

T753 big bang for the buck but Retails for $999. Worth the money for future flex. (main in/pre out, easy to use, drives most speakers well).
find a used arcam avr200 which is a very good sounding unit and unobtrusive with a nice clean front panel
All the above mentined (if you haved to use a receiver, which is a \sonic compromise, yes) receivers, like the Arcam 200, Nak AV10, Yamaha DSPA1/RXV1, Outlaw, etc are good sonic recommendations. Run speakers DEFINITELY as "small" however, and let the sub do the work.
Receivers are dynamically very challenged, and don't deliver current like separates power amps...not to mention most passive speakers are already limited dynamically.
Anyway running your receiver as small will help greatly!
After that, have him look for adding an amp at least in the future for better sound if possible. Then get a good pre/pro latter as well.
I got an Onkyo TXNR 900...full features...good remote, tons of features and built like a tank....mail me if interested Chad
Thank you all for your recomendations. My friend decided on a Denon due to the WAF.

Decided on a Denon "due to Wife Acceptance Factor?" Do Wives know something I don't? maybe they know Denon is good stuff...hummmm. I'm Giving Women far too little credit when it comes to "Audio/Video/Electronics knowledge" I presume!...MY-BAD LADIES!!