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    rear surround placement in corner

    Thats probably your best bet. The only other option you really have is moving the furniture around. I have setup Surround Systems like this in the past and it sounds fine. You won't get true rear effects but it will still sound good. Its better to have separation between the speakers, as you do...
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    Replacing a Yamaha RX-V1

    I would choose Yamaha over Sony any day. Their receivers usually have more watts than others and they sound great. I have installed hundreds of them and have few issues with them as well. A well priced Yamaha receiver with the most bang for your buck is the RXV-661.
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