haha this is so appropriate, i was looking to do the same thing having got fed up of my creative speakers.. i'd been looking for a surround sound amp, and came across the pioneer ones.. started with the vsx 415 i think it was.. pretty cheap.. anyway over the weeks i waited while saving and subsequently got a job i started looking at the higher models.. and i came across the vsx 1017 damn fine piece of kit and comes with everything i want.. and since i wanted to go from 5.1 to 7.1... i was thinking yeah that'l be nice...
anyway that's priced at around £425ish online ( i know this is out of your price bracket i'm just telling ya my story so you can see where you MAY end up as i was only looking to spend around 300 also )
7.1 hdmi switcher loads of digital optical and coax inputs great 360 surround sound i'll be in heaven i'm thinking...
so i goes to my local retailer who's been a friend of the family for some time, and was hoping for some kind of interest free credit deal..
anyway to cut the rest short
i came home with the Pioneer VSX 1017 S (wow)
a KEF 5.1 cinema setup of KHT 2005.2 plus another pair of 2005.2's to complete the 7.1 setup...
all on the store owners recommendation
wow.. is all i can really say the bass is astounding... the satellites are crisp and immerse you completely in sound and i haven't even got them all properly wall mounted yet.
basically i ended up spending just over a grand when i was barely expecting to spend around 300 to begin with... it's hard to say no sometimes lol
oh and bioshock sounds friggin superb in 5.1 so far

W00t! hopefully i can get it playing in 7.1 as soon as i get the appropriate cables from creative *sigh* i hate them lol