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I wouldn't bother with a used receiver unless it's less than a couple years old. There's alot in the <$400 range on the market depending what you want it to do.
The trend now is 7.1, so whether you potentially want to buy for the future is up to you. Next thing you may want is video switching. Some receivers upconvert to 1080P, some just do video pass through (no upconvert), others have no video switching at all. Another thing is HDMI switching, alot of receivers that have HDMI inputs only do Video and NOT Audio (which is kinda weird). So if you want HDMI switching make sure to check that it does HDMI Audio also (If you need it). I'm not sure how many inputs your TV has, or whether it's 1080P or not.
I do suggest buying a slightly better receiver because it really does make a big diff in sound quality. People always buy whats in budget but not buy what they want/need for their setup. A good receiver will last you a long time. So you don't have to keep upgrading.
If you don't need bells and whistles and only care about the audio side of life, Denon, Onkyo, and Yamaha make a decent entry level receiver.
If you need video switching, upconversion, etc than maybe try a Pioneer. Sony's are alright but I find they kind of lack power, but they have a tons of features for the price.
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