Buy the HK. Unless you want to spend twice the money its hard to beat. My 2nd system has Overture 3s and a HK reciever. Its not up to the standard of my Krell and Snell set up. But it shouldnt be.
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I second "Ninja's" H/K recommendation. Nice receiver, for a home theater system. As good as it sounds, I don't think I would use it in a high-end audio system. I have an Adcom Preamplifier and Power Amplifier for those purposes.
The H/K is wonderful for what it is intended for though.
You won't be sorry with the H/K AVR-354. Great receiver for what it is used for.
As your fronts will take up to 200w and your center and surrounds 150w, I suggest that you consider a more powerful receiver than the H/K which has only 75w x 7. Especially for movies.
The Onk 706 has 90w x 7 for $500 @ J&R. But that's not much more powerful than the H/K.
The Onk 876 w/ 140w x 7 would really fit the bill, but its an expensive bill - $1700 @ J&R.