I currently have a PS3 and a Full HD television. I am wanting to take advantage of the blu ray player's audio capabilities with a home theater. Thus, I am asking anyone if they know of a home theater that will playback full blu ray potential on a modest budget, say 4-5 hundred dollars. Any suggestions?
Right here on Audioholics, they just mentioned several modestly priced Pioneer (not Pioneer Elite) receivers that will work with your PS3.
http://www.audioholics.com/reviews/receivers/pioneer-VSX-1019AH-K
Sony, Onkyo and Yamaha also sell moderately priced receivers capable of accepting audio over HDMI.
However, you said nothing of speakers. On $500, you won't be able to really get a good 5.1 system and a receiver. Even the $500 Onkyo HTtiB is only pass through. Most of us here will tell you to avoid moderately priced Home Theater in a Box solutions and get your separates. It will likely cost you a (little) bit more, but the audio will be much better.
My advice would be to look at (and listen to) a set of mains (left and right) speakers whether towers or bookshelves that you like (perhaps the Energys featured on today's woot.com promotion). After you get some main speakers, we can help you pick out a receiver, a center, surrounds and a sub to complete your 5.1 setup.
What kind of receiver do you have now? If you have a 7.1 analog input you may just need to buy a player.
What kind of set do you have as far as speakers?
If you are looking to upgrade receivers I would rec. the onkyo tx-sr606 for around 400, or the 706 for 550-650.
I also like the denon avr 1909 and avr 788.
My pick would probably be the onkyo tx-sr606 if you want to spend as least as possible, it's alot of bang for the buck.
These are just preferences, there are many other good audio receivers out there ie yamaha, marantz, etc.
Since a PS3 doesn't need high res decoding, an Onkyo TX-SR576 can accept PCM over HDMI and save a bit of moolah to boot. There might be other features like more power and room correction that the OP might want that would make the 606 a better choice, but I'm not even sure the OP has speakers yet.
