Receivers 500 and under?

Don't buy a home theater receiver unless you want a home theater (at least eventually). There are always compromises when you pack more things into a single box, and there's no sense paying to pack things you don't even need.

Among 2-channel receivers in the sub-$500 range, you're pretty much restricted to the major Japanese brands, unless NAD has something. Among the mass-marketers, you probably won't find major differences in amp sections. Tuners are location-sensitive, however, so if radio's important to you (I presume it is or you would have asked about integrated amps), take each one you're interested home and try the tuner out.

Check out the "Outlaw Saloon" at www.outlawaudio.com for user comments on every imaginable topic concerning the 1050 receiver. An amazing piece of equipment for $499 (plus $34 shipping)! You might be able to pick up a used one for about $400 on A'gon but such opportunities are rare.

The Preludes are great speakers. I wish they were still made.
You should be able to get a 2 channel NAD receiver for around $500. Have not heard the Outlaw mentioned above, but I have heard the NAD and it probably competes with about anything solid state under $1k, provided you're not trying to drive less than a 4 ohm load.

Nakamichi RE-10 is a great receiver that is being sold at great discounts since Nakamichi just bankrupted. Their older receivers are classics and can blow away any receivers currently made. Check them out on ebay. Look for the TA or SR series. Only drawbacks are their binding posts aren't that great.

I don't think most other manufacturers cept for NAD makes a good two channel receiver since they concentrate their resources on home theater.

Have you considered one of the older McIntosh receivers?
Great tuner - certainly better than all the mass market
brands - and an okay amp section, too. Also, you can take
it to most McIntosh dealers and have it brought up to
factory spec for a nominal amount. And last but not least;
if you don't like the way it matches up with your speakers,
you can turn around and sell it for pretty much what you
paid for it.