Choices
First of all, I don't think you have any BAD choices. Yamaha is a great brand and so is HK. Somebody recommended Denon and that is a great brand as well. So no matter what your choice is, you and your roomie will be happy!
Sure, there might be a "best" choice. You mention the number of component connections as a criterion. Is it really? How many component inputs/ outputs will you be running? If you know you will need the extra connection then make your choice based on that. If not, ignore it.
Video upconversion is a good thing, particularly if you know you'll have inputs that will require it. I like it as a feature, though I confess I don't have a HDTV that requires it ... yet.
I'm also a bit confused about your budget. Do you have to get speakers AND a receiver for the total budget figure you mentioned? If so, I would get the cheapest receiver that met my basic needs and spend on the speakers. Are you planning to get a subwoofer? For the numbers you mentioned, better plan on getting a package -- not necessarily HT in a box, but not too far off, either.
Last, how much system do you really need. You are moving into a campus APARTMENT, which means you need to be considerate of your neighbors. Sure, they'll likely be students too ... but an apartment is really not the same as a dorm. You may want to impress visitors, but don't count on too many music wars.
FWIW, my advice is to get a scalable system that meets your needs now (i.e., small room system) and upgrade pieces over time. Unless you're rich, I really don't see how you can do anything else and still pay for tuition, books, food and rent. And beer.
Good luck. Let us know what you decided on.