I have been real happy with the Sony ES series, I think you will find a model that meets all of your requirements. www.sony.com
I recently purchased a Onkyo HT-S5100 for a steal. I thought the price was too good to be true, and while it is an excellent system for the price. I was disappointed to get an education on features I was missing out on.
I am looking for a 7.1 receiver with:
1. Take HDMI inputs and output the audio to the speakers and the video to the TV
2. Provide a good picture of at least 120 or ideally 240 HZ to our 240 HZ TV (the Onkyo gave a good picture from the slower speed cable box but very static-filled picture from the Blu-Ray cable, even with high-end 240 HZ HDMI cables).
3. Analog video upconversion to 1080p
4. Multi-room capability in addition to 7.1 setup not either/or
5. USB connectivity and/or network connection in order to play iPod or music/video from computer
I was interested in the Pioneer VSX-1019 but didn't like some of multi-room or 7.1 sacrifices
http://reviews.cnet.com/av-receivers/pioneer-vsx-1019ah-k/4505-6466_7-33496205.html?tag=tpr
Any suggestions would be appreciated. Ideally I would like to get the best deal but want quality (don't let the purchase of the HT-S5100 form your recommendations
) Also don't be afraid to let me know where I need more education...

Chowhound
Comic Vine
GameFAQs
GameSpot
Giant Bomb
TechRepublic