Yes is it a good deal,is it a good receiver and yes should I by it

I basically use it for crankin up the tunes and watching movies,dont really need the bells and whistles.Will a package deal give me what I need or is there really something better about the receiver that justifies the price compared to a full Onkyo setup for the same price
Most of the guys that hang out here enjoy the process of picking out individual components, and pretty much expect to cycle through all of their components, upgrading until they have the best performance for their personal budget/values.
If this describes you, the Yamaha is a good basis for a system.
If you want to pay one (inexpensive) lump sum and be done with it, the Onkyo offers an all-in-one solution without locking you into only being able to work with their speakers or sub (unlike many HT in a box packages).
If you can get the Onkyo locally with a good return policy, and have the opportunity to test it thoroughly during the return period, it is a good option.
Newegg has three reviews on the Onkyo and all three are having problems with their subwoofers:
Newegg.com - ONKYO HT-S5500 7.1-Channel Home Theater System
I would pass on the Onkyo if it is a mail order deal. OTOH, if the sub does die after the warranty, you can replace it with a different brand (like the pioneer, for example) and still be money ahead.
Hope this gives you some direction.