I've been shopping around for a reciever in that range too. My sites are on th Panasonic SA-XR55s and the Panasonic SA-XR70s. Thease are small units so their should be enough room to add on a DVD player. It is also a good choice because once HD-DVD's and Bluray-DVD's come out, you can get an upgrade. I think thease two units are the same except for imputs. The XR70 has an HDMI imput so if you are going to hook up a nice DVD player to your TV, you can run the HDMI into the receiver and then HDMI out of the receiver into your TV. Then you would have digital sound and video. I'm still shopping around too so I have yet to actually use or hear first had in a real invironmet what they sound like. From what I hear, they don't sound as good as their analog cousins but sound pretty good as digital units go. Look hear for a review of the XR70 http://reviews.cnet.com/Panasonic_SA_XR70S/4505-6466_7-31290106.html?tag=pdtl-list
Good luck.
I have an open-air loft that is about 500 sq. feet and I'm on a budget for around $250
I just ordered a 32" LCD and I want it to sound GREAT.
I've looked at the Samsung HT-DS610, Panasonic SC-HT670, Samsung HT-DS610, Sony HT-DDW660, Samsung HT-P38, Sony HT-DDW670, Panasonic SC-HT700, Panasonic SCHT05, Panasonic SC-HT720, Panasonic SC-HT650, Samsung HT-WP38, Sony HT-DDW760 among others.
I'd like to have a DVD player with it, but I'm willing to buy one separately. But I DO want the ability to use an optical connection with the audio, which the Sony's seem to lack.
It doesn't have to blow the windows out of my place, but I want it to sound as crisp & clear as possible.
Any help would be great! Thanks.

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