I have really enjoyed this Receiver(Great HD decoders) but now this is the second time in last 6 months it has stopped working.

Yesterday it just quit playing a CD in the Blu-ray player. So I grabbed the remote and turned it back on.........Crack. and a flash of light from the right rear and a that had a burnt motor smell came out before I could hit the button to turn it off. I unplugged it and the right rear was warmer then the rest of the case. I also have alwways had a fan blowing on it as has always run Much warmer then my old 5 year old Yamaha RX-V2400(no HD decoders) that I had to hook back up to my main system. 6 months ago the front end display went out...resistors went bad...$185.00 to fix warranty was out.(The repair Tech said there was a note from Onkyo about this problem) thanks Onkyo for not telling us befoore the warranty ran out. I plugged it back in and turned it on again, front display came on then another crack and small stream of black smoke, all in about 2 seconds. Turned it off and it sets in the closet. I looked on Ebay and found 4 other 805's for sale...In Parts.WTF

Looks like the 805 had so serious design flaws. Looking at a Yamaha RX-V2065 that has the same specs as the 805.....never again on a Onkyo,,all firmware upgrades had to be done ata Onkyo Repair Dealer Only.. anyone else have a problem with a 805???
I think your problem is to quite a large extent your speakers.
I think the problem with that Onkyo, is that they have biased it too far to class A to improve audio quality. Most receivers are biased far too far to class B to be quality units. The problem is in receivers there is only room for puny devices which can't take the heat of biasing further to class A.
The issue is crossover distortion which is hidden in the usual bench tests. Crossover distortion increases as power output decreases! That is why to me receivers sound pretty dreadful and gritty. The more the output devices are biased to class B the greater the crossover distortion and the cooler the devices run. The more they are biased to class A, the less the crossover distortion and the hotter they run. At full class A they run hot all the time, even at idle.
Now your speakers are amp killers.
They use an auto transformer, as the horns have to see constant impedance. However the amp sees anything but. I understand from descriptions on the NET that the impedance of those speakers is below below four ohms a good deal of the time, and phase angles are well in negative territory. This does not surprise me as are a quasi series design. Series crossovers are always tough on amps.
The other issue is that the caps used on those speakers are known for severe deterioration over time which compounds the problem.
Also in your speakers there is huge overlap between the mid and HF horn also compounding the problems.
A redesigned crossover was available, but it no longer is. However you can build the modified crossovers. The auto transformer has to be preserved.
I strongly advise you replace these crossovers before you blow up and more output devices.
Now the modified crossover makes the speakers rated at a four ohm load. They are effectively four ohm or less in any event, however there are some huge impedance peaks, which allowed them to be rated 8 ohms which they are not.
With the lowering of margins on newer receivers, I would strongly recommend an external amp. So get a receiver with pre outs.
Since these speakers almost certainly present unusual amp loading, I would highly recommend a Quad 909 current dumping amp. Peter Walker's designs, were guaranteed stable under all loads.
Also these amps are unique in that the output devices can be biased well towards class B. The output dumpers are corrected by a small very high quality class A amp, in a feed forward arrangement. So you have class A performance without a huge amount of heat. There are six high current output devices per channel. The devices are never stretched and long life can be expected. Performance is determined by the small class A amp. The Quad 909 has no crossover distortion. These amps are of a build quality of your Revox A 77 Mk4. That unit is of a build quality far above the rest of your system.
You other option is to ditch the Klipsch Cornwalls.
I have attached the circuit you can build to update your speakers and make them a safer load.
If you can not build them yourself, I would be prepared to build them for you. I would need your boards, as I would need the auto transformers.