500 for a receiver means you should be spending at least 1500 on speakers.
Questions to ask. Does your blu-ray player decode Dolby HD and DTS HD?
Are you good with wood? Or would you like to be? DIY and you will get the best for your budget.
If so I suggest you look at a receiver without those features like a Marantz 4002 or a HK AVR 247(it works) Both options are significantly cheaper than the yamaha and will net you equal performance imo.
Compromising like this will leave you around 250 to 350 for your remaining budget. That's enough for a nice external amp if you need the extra power or if you don't A KEF iQ5
I suggest you check out KEF iQs I think they have great sound and they present a very wide sound stage. Plus you can pick up KEF eggs for surrounds and they will create a seamless sound stage if WAF is a concern.
A common mistake in Audio is buying an overpriced receiver/amp per speakers. If you spend 500 on speakers you shouldn't be spending 500 on an amp. You might as well flush 300 dollars down the toilet. Speakers matter the most because they make the sound. If your budget is 1000 dollars. Your receiver should be around 200 and your speakers 800. 80% of your budget should go to speakers. They are the part you can keep forever.
This is a great package for the price if you want surround sound now(if you are primarily a movie watcher I suggest that route) and all you need to do is add a good sub. Do go and find a dealer that sells them and listen to the speaker before you buy them though.
