I've never been crazy about Sony receivers... looking at the BB website, there is a Pioneer that may be comparable and is actually a few bucks cheaper.
I've always been partial to Onkyo, but a comparable model Onkyo is going to push your budget a bit higher - into the ~$400 range.
Sam is guiding you in the right direction - there may be some more initial setup pains in going this route (as you've discovered), but in the end you'll wind up in a much better place than with a HTiB or by going the "other" route of using the TV as a hub and dumbing everything down to 2.0 (which no one should EVER do if they care about getting the home theater experience).
I've always been partial to Onkyo, but a comparable model Onkyo is going to push your budget a bit higher - into the ~$400 range.
Sam is guiding you in the right direction - there may be some more initial setup pains in going this route (as you've discovered), but in the end you'll wind up in a much better place than with a HTiB or by going the "other" route of using the TV as a hub and dumbing everything down to 2.0 (which no one should EVER do if they care about getting the home theater experience).