After doing some research, I just ordered the Onkyo 905 receiver. I should get it in one week.
I pre-ordered the Pioneer Elite 95 Blu-Ray player.
Both will upconvert standard def material to 1080P...well 1080i for my old set

The Onkyo runs a tad hotter than most receivers but it uses an HQv Reon processor which is supposed to be superior to the farujda (sp?). It also uses a large toroid transformer in the amp section. No other ones in this price class ($1600 MSRP) have this.