You might try hunting around the forums, as this question comes up a lot.  The questions that will come up are:

- What size room?

- What is your usage?

- What is your budget? (which you answered)

Then, you'll find that any offering from Pioneer, Onkyo, Denon, etc, are going to be good choices for your budget.  I, personally, happen to be an Onkyo fan, but your mileage may vary.

As for your 605, there are folks that have had great luck with theirs.  Popping is not a problem associated with most of them, so it sounds like yours is simply in need of repair.  That would be my first priority.

Good luck.

Yes I agree if the 605 is still under warranty I'd try and get it serviced. 

If it's not though, getting it repaired may be more trouble than it's worth and of course you still wouldn't have preouts. 

Edit: Hmmm, looks like the 1019 doesn't have pre outs either though, so if you want to give Onkyo another shot you could do the 707 or 807, or another reasonably priced option would be the Marantz 5003. 

Hope that helps, thanks!
 

http://onkyousa.com/model.cfm?m=TX-SR705&class=Receiver&p=f

the onkyo ts sr705 sounds good ?

 would their be any problems with me using this receiver? with the xpa-3

The drawbacks for the 705 vs. the 707 or even the 706 is that it only has three HDMI inputs and it will not upscale to 1080p, in fact I believe it will only upscale to 720p. 

If those are deal killers you should look into the 706, I would bet you can get it for a pretty good price since the 707 has been out for a bit now.