Moverton,
I think you are on the right track. You could get a brand new receiver with all the wiz bang HDMI 1.2 for $1500 or a refurbished or used one with comparable audio performance for <$500. Use the money you saved for a quality upscaling DVD player like an Oppo Digital or maybe even HD-DVD.
On your used list, you might consider the newer Denon 3805 which is newer and more comparable in processing features to the Yamaha RX-V2500.