Yeah, I agree with what has been said about the Denon 2308ci....my apologies as I hadn't looked at that unit in a while, but it does not offer the HD codecs (or pre-amp outs) which is a big downer as you will have to use analog interconnects from a Blu-ray player that decodes internally in order to take advantage of the HD codecs. This totally defeats the simplicity of bitstreaming it via HDMI to the reciever...
Definitely go with the Yammy or the Pioneer...The only other option might be, I found the Denon 2808ci which is a nice step up from the 2308cu for $620 shipped on amazon...great price on a $1,200 AVR but this is $120 over your $500 limit....