Looking for recommendations for a decent AVR

I was using Onkyo HT-RC 180 AVR to drive the center and rear speakers as well as video processing, hdmi, etc. For the fronts and subs I am using Peachtree Nova 125 (damn good value by the way).
So about a week ago, the Onkyo started giving trouble related to HDMI processing. I am running my Blu-ray and Apple TV (mainly for netflix and youtube) via the Onkyo hdmi port. Basically, the picture disappears after a few minutes (replaced by a green screen), and sometimes the sound is there and at other times its not. I did some research and found out that its a common problem with the Onkyos built in the last 5 years or so. Most people are reporting similar issues after 3 years of use. I can attest to this fact because mine went out after about 3.5 years (right after my warranty expired).
So now the choices are to deal with Onkyo customer service, get the usual run-around, pay a substantial amount to get it fixed, etc. You guys know the drill ... Or just bite the bullet and buy a new unit (anything but Onkyo). One thing is for sure: Never buying an Onkyo again. This unit was not exactly cheap and its sad that so many people are reporting the problem and Onkyo does nothing about it.
So my dilemma is that since I am planning to continue to use the Peachtree to drive the fronts and sub, I don't really need a powerful receiver just to drive the the surrounds (2 rears only) and the center. But I do want good quality, video processing, several HDMI inputs and outputs, and definitely pre-outs.
I am open to either new or used but don't want to spend a lot of money ( < $500) because I'll just be driving three speakers with it.
Any recommendations or advice is greatly appreciated.