Upgrading my HT system one component at a time - first up NEW RECEIVER

Hey Guys I need some assistance with a receiver selection. I have followed HT forum for about 6 years and used some advice in selecting a TV but I need to upgrade my old Sony DA 777ES receiver ASAP, it just died. My other current components are:

Toshiba 65HM167 DLP 1080P Rear Projection
Sony STR DA777ES  (this is what I am upgrading)
Sony PS3 - used for gaming and Bluray. I also have a Wii
Sony CDP-C245 CD Player
Vienna Acoustic Bach Fronts
Vienna Acoustic Haydn Rears
Vienna Acoustic Theatro Center
Velodyne CT-100 Subwoofer (the next thing I need to upgrade)

I am not an audiophile expert so here is where I need help. I want a mid price range receiver for around $500 (give or take a little depending on best quality) that will be able to get the optimal performance out of the rest of my components. I think I want full True HD decoding as well as being able to utilize HDMI to transmit both audio and video from the receiver and the PS3, Comcast HD dual tuner DVR and TV. I use this system primarily for movies and TV as my CD player is outdated. The majority of the music that will be listened to will be through digital cable music or my ipod. Should I be concerned about trying to get THX certified or is that not in my price range?

Quick facts about my entertainment room. It is mostly rectangular 20'x16' but due to a bow in the back wall and offset of the main viewing couch the positioning of the rear speakers is not optimal. I don't notice the weird shape distorting my current audio and I assume that the room is sufficient in size to warrant a minimum of 100 watts per channel?

Any other connectivity suggestions based on my current components would also be appreciated!

Thanks!
Mark

First things first. If you are using a PS3, you have no need for a receiver that decodes TrueHD, and wouldn't want one anyway, since the PS3 cannot bitstream DTS HD MA, but can decode it internally. I know you specifically mentioned TrueHD, but several distributors are using DTS HD MA exclusively, so this is worth taking note of. What this means is that your options open up in terms of a receiver. I'm using a Sony 7.1 receiver that handles PCM through HDMI, which is what lossless audio is converted to if decoded internally. 110W per channel and auto calibration via included mike. I still have to upgrade my speakers to full 7.1, but it sounds great. The latest version of my receiver is here: www.londondrugs.com/Cultures/en-US/Product+Detail/Electronics.htm. As for the HDMI from your PVR, no broadcaster is presenting programs in lossless audio (bandwidth, as always), so the receiver's DD and DTS decoders will be up to the task. I would connect your Wii via component, and this receiver also has a DM port for hooking up your iPod. If you don't like Sony, just keep in mind that all you need is a receiver that will handle multi-channel PCM through HDMI.