Reciever Recommendation

[Justyntym]

I read the newbie section and have a couple of questions...

I have a PS3 and a much older surround system looking to upgrade.

What annoyes me is when watching a movie, I can hardly hear the dialog
and then when a special effect hits, it blows me out of the room so I am
constantly changing volume accordingly thruout the movie.

What I would like would be a reciever that levels volume...sometimes I watch
late at night and am the only one awake (insomniac). I can't hear dialog at
lower volume and then I wake the house. If you guys tell me volume levelers
are junk...I'm good with that. I'll skip it.

The other thing, and I don't know how far along this technology is...I would
rather have my speakers just in front of the tv. I've seen certain systems
offer "like" surround sound with 3 speakers using spatial reflection (or whatever, not sure if my terms are correct). If you guys tell me this is garbage I'm good with that, I'll fagetaboutit.

Another super newbie question...I've been looking at the onkyo 606
(looks like a great reciever) but I see it's 7.1 and I've only got 5 speakers.
I want to get the best value reciever for the buck now and then hit better
speakers later. Is there an option on the reciever for 5 speaker set or will I
miss certain audios and do I need to get a 7 speaker system?

I'm much more concerned with overall quality and value then the features
mentioned but if there is a compairable reciever with the features (unless they
are junk) then I would be interested. Please keep in mind the source is the
PS3 and I appreciate your help. Very informative site