Upgrade from B&K 202

I have an AVR 202, by B&K components. It is very old but good sounding model that drives Paradigm studio 100's. I would like to have component video switching and be able to see the controls of my B&K through the on screen displays. My equipment is located in another room. I am a single guy and really can't afford to spend more than 2k on the receiver. I could, but I would really have to justify it.

The question: Looks like the 307 has what I need (component video switching, 7.1) Is there any reason to go newer? What is the difference between the 307 and the 507? 507 vs 507S2. Any ideas on what has changed/improved exactly? Any other units I should be looking at.

Thank you very much for helping me out on this big decision.
Why not just get a video processor like a DVDO HD+ with signal conversion? They can be had used for $700-800 and then you would have DVI switching which is really much more important than component with many newer devices, and would get better video quality as a side benefit. I would not envision the 307 as a huge upgrade on audio though I have not heard them side by side, better to save your pennies and go separates later when you have more funds.