I have had this receiver for several weeks now. I was a little leary about purchasing this unit as it was being used in a room that does "double-duty" of being a place where I listen to high-end analog and digital music along with occasional use of a home-theatre. The primary purpose is music reproduction and I was tempted to go with tube-style amps and other gear in support of my vinyl record collection. But since there are always compromises in this area (space, money, etc) I decided to take a chance with this Onkyo. All I can say is WOW. I run 5.1 channels with bi-amplification on the front speakers (my one concession to music versus video). The sound reproduction is excellent. I have done a lot of comparison shopping and looked at a lot of different systems and I would have had to spend over $4-5K on hybrid tube amps to get sound better than this.
In terms of home theater, it is even better. It performs as advertised. Set-up was a breeze and the audessy is a pleasure to use and instantly "balanced" my room. For home theater use, it is incredible. Ground-shaking lows, booming sound when appropriate yet the most subtle sounds (such as dialogue at a low level) is outstanding. Some reviewers complain about it running hot. I have mine outside of any cabinet (top shelf of a component stand) and have run it for hours at 75-80% of max volume with no problems.
My two complaints are: The remote as the buttons are a bit hard to read in dim light (even with the back-lighting) and it only has 3 digital optical inputs. Given I use seperate CD and DVD players, along with a Laser Disc and other digital sources, I had to use the alternate digital cable connects. Not a big deal, I just expected more digital optical inputs.
In summary, if you are looking for a leading-edge video processing unit that has outastanding home-theater characterstics at a low price, then this is definitely it. Throw in the fact that it processes music far beyond the expectations one would have for solid-state receiver (especially at this price point) and you really have a great unit.
If you do decide to buy this, please note the dimensions and weight. This is a large, heavy receiver. And given the heat concerns of other posters, I would make sure it has plenty of "breathing room".