For a strict 5.1 system, in terms of DSP it really doesn't matter IMO. Some would say if using Pro Logic for TV viewing etc. it would be considerably better with PLII or PLIIx. As for me, I use both Pro Logic and the truncated Logic 7 available in these units depending on source and am more than satisfied.
PLIIx is the rage and is quite impressive but I can soldier on without it. I suspect you can as well. Receiver upgrades would be more in the areas of calibration and convenience features. Our units are extremely similar with only a few minor differences. If you are satisfied with the 500's processing and have no plans to expand the system to more channels then stick with it.
I confess to being a rather rabid fan of HK and own a houseful of their equipment. I'm sure someday I'll move on into the 21st Century and upgrade these systems, perhaps with something else. But not before I wring the last bit of HK goodness out of them.
