Like others noted, I hate to see you drop good money into something that old.
This could be a little expensive for you to consider, but NAD came out with a "two channel" Receiver with a built-in DVD/CD player combination unit late last year, its called a L-53.
The unit retails for 600 but can be purchased at a discount, I purchased one from my local authorized dealer and it comes with a two year warranty. I wanted something better than a entry level receiver, but did not want to spend big dollars.
I'm using it in a small back bedroom with a simple two way floorstanding speaker and have a TV/VCR connected for both audio and video switching. Sounds alot better than I expected, has a nice remote control that works my TV and VCR. Like you, I have no interest or the space for surround sound or multi-channel set-ups.
When my friends drop by with the little ones, they can plug video games into the front AV Jacks with no problems and it also has an alarm clock or you can set a time for the unit to shutdown at night. I use that feature often.
I think their is a review with more details at www.enjoythemusic.com
Best of luck!