I have found that all receivers are quite lacking in terms of good amplification. Also, I have found that there is not a lot of difference among DSPs in receivers.
I used to own Yamaha RXV2095 receiver (list price around $1,600) and had wanted to upgrade to Yamaha RXV1 receiver (their top of the line at $3,200 list price) to improve sound quality. I A/B tested them at my dealer and found the RXV1 to be slightly better in sound. I then hooked up the RXV2095 to a 5-channel JBL Synthesis 650a amp, and I could not believe the huge improvement in sound. The combination sounded so significantly better than the RXV1. At that point, my dealer admitted that the DSPs differ very little in sound quality, but the higher priced receiver does give you more DSP modes, if that is what you are looking for. He said that the slightly better sound of the RXV1 over the RXV2095 was probably due more to the fact that RXV1 has a better amplifier.
My advice is that if your goal is to maximize sound quality, and are willing to spend up to $1,000 or a little more, you might want to consider adding a five channel amp to your receiver. Given your tight budget, you might want to consider buying a used receiver on Audiogon. Also, receivers don't maintain their value well. Audiogon has a lot of terrific deals on them. I have seen a used RXV2095 on Audiogon recently sold for $500 (mint with box and manual). This model has DD, DTS, and all the gismos and was one the most highly rated receivers in the past couple of years (see audioreview.com). Then with about $800 to $1000, you can find a terrific 5-channel amp on Audiogon, to build yourself a system that is far superior to any receiver you can buy.
I used to own Yamaha RXV2095 receiver (list price around $1,600) and had wanted to upgrade to Yamaha RXV1 receiver (their top of the line at $3,200 list price) to improve sound quality. I A/B tested them at my dealer and found the RXV1 to be slightly better in sound. I then hooked up the RXV2095 to a 5-channel JBL Synthesis 650a amp, and I could not believe the huge improvement in sound. The combination sounded so significantly better than the RXV1. At that point, my dealer admitted that the DSPs differ very little in sound quality, but the higher priced receiver does give you more DSP modes, if that is what you are looking for. He said that the slightly better sound of the RXV1 over the RXV2095 was probably due more to the fact that RXV1 has a better amplifier.
My advice is that if your goal is to maximize sound quality, and are willing to spend up to $1,000 or a little more, you might want to consider adding a five channel amp to your receiver. Given your tight budget, you might want to consider buying a used receiver on Audiogon. Also, receivers don't maintain their value well. Audiogon has a lot of terrific deals on them. I have seen a used RXV2095 on Audiogon recently sold for $500 (mint with box and manual). This model has DD, DTS, and all the gismos and was one the most highly rated receivers in the past couple of years (see audioreview.com). Then with about $800 to $1000, you can find a terrific 5-channel amp on Audiogon, to build yourself a system that is far superior to any receiver you can buy.