I bought for my brother a Sherwood 7108 at CC last month for $129. This has 100 watts/ch., DD/DTS/DPLII. It's the least expensive HT receiver on the market, and it is a good performer.
I have about a 3 or 4 year old Sherwood RVD9090 that I just love. It is DD/DTS, and has pre-outs for all channels. It has performed flawlessly.
I have no experience with Sherwood, and I can't comment on the quality of their products, however:
The RD-7100 has 100 Watts RMS per channel (x 2) in Stereo Mode with no more than 0.7% THD from 40 Hz to 20 kHz, 6 ohms and 100 Watts per channel (x 5) in Surround Mode.
Sounds shakey. You can't really read too much into THD numbers, but 0.7% is huge and thats only down to 40hz and 6 ohms. Also its says 100x2 and 100x5, that doesn't sound right. I am assuming this is peak power. You just can't get that type of power in this price range.