I am having a very difficult time deciding on a receiver for my Home Theater and at this point have been unable to find one that has all of the features that I am looking for. I plan on using my system for HT/Music 60/40 and will be purchasing Aperion speakers. Ideally, I would like to have a single cable (HDMI) to my TV and run everything through the receiver.

Room:
14' x 14' but open to another room of the same size.

Speakers:
Fronts: 422-LR or 532-LR (Prob the latter)
Center: 533-VAC
Rear: 422-LR
Sub: S8-APR (I think)

Receiver Requirements:
Superior Sound Quality
HDMI (1.2+)
2 HDMI In / 1 HDMI Out (Monitor)
Upconversion - 480P, 720P, 1080i (P)
at least 6.1
Cost ($600 - $800 Street Price)

Inputs:
Computer (Media Center)
Sony DVD
XBox

I have been looking at Denon AVR-2807 (2307), Onkyo TX-SR674, Yamaha RX-V1600 (2600) and Pioneer Elite VSX-82TXS receivers as these seem to be the bang for the buck options. I have been focusing on Receivers that have 2 HDMI in and allow for a single cable to my TV (50" Sony HD). I really like the Denon but it does not allow for upconversion of lower quality signals. Is this really important? My current DVD player does not upconvert, is it better to upconvert at the DVD player or does it matter?

I have read a bit about higher end receivers like Outlaw. Should I opt for the quality and forget about HDMI?

Any advise would be greatly appreciated!