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My first "real" AVR was a 703, and I haven't looked back. I think Onkyo leads the pack at each pricepoint. With you room size you definitely would not want a lower series than the 709. Buy with confidence. Although...you're budget allows for an upgrade. Many think that the 809 is worth the extra. The 709 does have all the features you need with sufficient power. I for one love overkill. Of I had to replace my 3008 tomorrow, I would be choosing between the 709/809, and the deciding factor would be whether or not my wife saw the price difference. I could easily justify the 809, my more practical better half would say "Get the minimum that meets your NEEDS". 709 fits the bill.
 

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If you live in USA be sure to check pricing at Accessories4Less.com. Awesome prices on Onkyo refurbished with 1year warranty. You can buy inexpensive extended warranty at ShopOnkyo.com.
 
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