I have a couple of entry-level Denon A/V receivers (I liked the first so much, I bought a second when I ran across a great deal on a refurb unit). The one thing the Denon offered that wasn't available on other units in that price range is video up-conversion . . . All of the video inputs are routed to a single component output, so there's only one connection from the receiver to your television. Composite and S-Video inputs are all switched via the receiver and routed to the component output. Very convenient, and it cuts down on the rat's nest of wires a bit.
IMO, look for a unit that has up-conversion, and as many component and digital audio inputs as you can get (as well as looking for sound that's meets the demands of your ears, of course).
My (non-audiophile) $0.02,
Tort