Just picked up a Yamaha 661 and set it up last night, and am very happy with it so far. Pretty sure I paid $340 and it will take a 5.1 signal and matrix it into 7.1 (which I don't think the budget Onkyos will do, they support 7.1 but only with 7.1 input).
2 hdmi in, and 3 component, all reassignable. Does not convert component to hdmi (which I think one of the budget Onkyos might) so you will need to run both to your tv, but for me that was not a problem at all.
I'm planning to use it as a pre-pro with a 3 channel dedicated amp for the front LCR channels.
The budget choices these days are pretty overwhelming, with the number of features that get packed into modern amps, hope you find something you are happy with.
--Matt