AV Receiver Help me narrow it down

If your in the closet (no pun), then you likely have no ventilation if the doors are closed. And, if movies only, that sounds like a perfect candidate for a DIGITAL AV RECEIVER! That equals low heat, and likely no fan or issues. Again, since it's movies only, any pickiness on ultimate sound quality preferences would be more of a moot point, as long as it's clear sounding and offers good enough dynamics and power for the speakers you're driving.
The Panasonic SA-XR55 and JVC RX-D20 are Class D digital Amplifier units, and will do what you need, likely.
If you go the tradiational Class A/B type power amp route, you can also go with very efficient horn loaded Klipsch loudspeakers, and that will draw much less current from your AV reveiver, making it run cooler than standard 86-88db loud speaker designs. It's a thought.
What gear are you using besides the receiver?

closet is more like basement. I would eventually like to load all of my blu-rays on a media server device and be able to send it to my bedroom and living room... depending.. without having the electronics accessible to the kids.

All speakers are 8ohm speakers, bookshelf size fronts, sub, center, two surround and a back. I also have two additional bookshelf speakers I could use for an additional front, all matched. The bookshelves are 200watt the surrounds at 120watt.

Butrfly, one other thing that would come into play is the size of your theater room. But being that you have bookshelves that are 8 ohms, you should be in good shape unless they are unusually low efficiency, like 85db.

Wanting pre outs(you'd need 7.1) for an amp down the road limits your choices to more expensive options as various brands do not include them except in their higher end models. And since you want to place it in a closet, models that might run hotter should be avoided. Onkyos used to run hot and might still plus they have a spotty record for reliability, so that leaves Yamaha, Denon, Marantz, Pioneer, etc.

I know Onkyos best as I've had 2 and still own a TOTL 5 yr old. Wanting to get the latest features, I'm looking to upgrade too, and I'm looking at Denon. They seem to have more refinement in the implementation of functions, from what I've read, and have better customer service and reliability. I don't know the other brands too well, except Marantz is priced significantly higher for the same feature level.

If you don't need the latest greatest you could opt for a discontinued Denon and save a few hundred. The Denon AVR-3313CI is a pretty good option, loaded with technology and good performance all around. You should be able to get it for 850 online. I want the TOTL Audyssey room correction and Low Frequency Containment, so I'm waiting to get another Denon, the AVR-X4000, which has both but it's much more money.

Good luck with your hunt.

with the pre-outs, what I don't understand is why there isn't a middle ground for seperates. Something like the UMC-200 looks enticing but doesn't have nearly as many wiz bangs as the X4000. Given that the amp itself is a large expenditure why is it only in the high end units have the preouts.

Basically you are paying for the an internal amp that you don't use for a plus 1k receiver with all of features wanted.

I am considering the x4000, UMC-200, Marantz 6008. I have had a low end Onkyo before that I liked and it did run warm (not sure what "hot" qualifies as but it did heat up abit).

Looks like I just need to make a decision, setup and try if I like it.

Also what I find interesting is that no one is really saying that I need to spend more money than I have set for the price range.

If there was a compelling reason to spend more, I would rather do it now for a particular feature than find out I did not spend enough and then rebuy something.