The Yamaha RX-V1600 would seem like overkill, but if you can get it for a great price then go for it. However, I would suggest getting the RX-V661 or waiting just a while longer for the Onkyo TX-SR605 to hit the shelves as it will have the best feature set of any similarly priced receivers upon its release.
Onkyo has a very good reputation for being the easiest to set-up and use receivers. The TX-SR605 has HDMI 1.3 as well as Dolby True HD, DTS-HD Master audio decoding and audigy auto set-up. This receiver fits your needs for today and tommorow when you get into one of the HD-formats.
Good luck with your decision,
Seth=L