I'm with Ernie. The RX-A series are great. Tie in an internet feed and you have a ton of listening options, including Pandora, Internet Radio (which alone offers a ton of free content), Sirius Internet, Rhapsody, and more. You can plug a USB thumb drive or iPod into the front and get full control with the remote and view on the TV. You can also connect to your TV. The biggest plus though if you are looking for two zone control is the free iPod/iPad app. This app gives you control of both the main zone and zone 2 from the app. You can see AND select your music for your internet based "apps" on the receiver as well as see and select your music from your iPod. You can also stream music directly from the iPod/iPad you are using for control straight to the receiver to play in either zone. They could easily charge a lot of money for the app but it is offered free.

They do also upconvert all analog signals to HDMI. I know they start above your price range, but well worth it. The 1912 also is above your price range as well.