Receiver upgrade
Obviously most of you didn't read his post. He has the lowest receiver in the Yamaha line which obviously does not include pre-amp outputs or com near to 110 Watts / channel even with only 1 channel driven.
As suggested in an early post, some of the specs of low end receivers are inflated and use different measurement techniques, like power @ 1K Hz @ 10% THD, etc. Realistically you are probably getting 30-40 watts per channel out of that receiver when watching a movie.
I recently purchased the HTR-5860, and for $350, it is in your budget. It is a decent power, perfromance, and feature upgrade and would allow you to connect an external amp in the future. If you don't mind used or refurbished, I would look for a RX-1500 for around $400. It will really deliver the 110 Watts and would be a major upgrade.