I to have been looking at recievers to replace my 12 yr old Yamaha and the only reason I have not pulled the trigger yet, no money! I have even looked into the lower end models like the Onkyo TX-SR707 and the Denon AVR-1910. For me I need to have the analog inputs for my multi-channel DVD-A/SACD player. And for me the ability to add external amplification down the road is also important. Both offer up to date decoding and a good amount of HDMI conductivity. IMHO the THX certification is not so much of a plus to me anymore. There are certain brands that are not certified that actually surpass THX requirements and choose not add the cost of the THX badge. But I would how ever wonder about a product that tried and failed the THX certification process, like Bose!
The Onkyo appears to have 10 more watts than the Denon but in the real world the Onkyo may end up putting out the same or maybe less? I agree with others that if you get the Onkyo do not close it in as the Onkyo's run hot. Another thing I am not thrilled about on the Onkyo is that it caps the component video at 50MHz and the Denon caps it's component video at 60MHz. Granted at it's price point there is a certain amount of things that will be cut back and that is why it is as cheap as it is. It also seems to me that companies are cutting back on analog inputs on the lower end models so they can push the higher end offerings. If you do not have alot of sources then ether one of these recievers should do well, just as long as you do not have a really big room. I how ever would side with the Denon for build quality, slighty better components in certain places and customer service. Onkyo does not seem to fare to well in the customer service area for some reason. The best reciever is one that meets your needs and provides good a/v performance.
I like some of the top end models of Onkyo and I like some of the Marantz and Pioneer Elite models as well. But for myself when all is said and done I will most likely wait to replace my Yamaha RX-V995 until I can afford to get ether a Denon AVR-4310 or the Denon AVR-4810. I still will not rule out a Onkyo TX-NR5007 or a Rotel RSX-1560!
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Either reciever would meet your needs, but you wrote that you plan on hooking up your PC to the reciever. So that should seal the deal for the Onkyo.
I do not think that the 707 has a ethernet connection.