Please help my buddy (HT setup)

[Colglizity]

I've been advising a buddy of mine on the joys of home theater lately. After many discussions I got him to bite on a starter setup suggested by some of our members. For speakers I talked him into a Polk Audio RM6750 5.1 setup from Amazon for $228, and now time for the receiver. Budget is HUGE for him cause his wife is already sceptical of this new adventure. I want him to experience HD audio as he uses his PS3 (HDMI) as a bluray player. Other things that will be hooked up will be his sattelite box (HDMI) and a Wii (component). I found a good deal on the Yamaha 463 for $200. I have the 663 and love it. I know everyone will want to suggest the Onkyo 605, 606, etc. as they have onboard decoding for HD audio, but that's not as big a deal as the price... 200 is going to be a stretch for them already. Am I giving him good advice? Will the satelite, wii, and ps3 video be able to be outputed via the hdmi cable to his panasonic plasma? Will I need to output a component to the tv because of the wii? All help will be greatly appreciated! Thanks.