Receiver Questions

[Man-Is-Obsolete]

Okay let me preface by saying I have a Sony KDS-50A2000 tv, 20GB PS3, and a old JVC HTIB surround system. I am looking to upgrade my receiver first than slowly upgrade speakers potentially to a 7.1 setup. I realize the PS3, at least at this time, cannot bitstream TrueHD and Master Audio but it can decode True HD and there is a lot of talk that it will support Master as well. I plan to use the PS3 as my blu ray player so having a reciever decode HD audio codecs isn't important. 2 HDMI inputs are enough as well.

So I have decided, after researching many sites, upon the Yamaha RX-V661, but I have a few lingering questions yet to be answered that is keeping me from buying.

1. Is updating reciever first the best solution? In other words will I notice a difference in sound on my current HTIB speakers with the new receiver and the ability to amplify lossless audio?

2. Like I mentioned before I am going to update my speakers, probably to Definitive Technology's Pro Cinema 1000, so in the future is 90 watts per channel enough power to fill a decent size family room and for those speakers?

3. The reason I chose the Yamaha 661 is that I have heard some issues with Onkyo's 605 (popping between inputs, handshaking, and just faulty receivers at times) and Sony's 910 is said to not have as good of sound as other brands, so are there issues with the Yamaha 661 that I have yet to unearth?

4. My budget is under $500, so my last question simply is the Yamaha RX-V661 a great choice for me now and for the future?

Hope I was clear on everything and thanks in advance for any insight and answers you guys can give me.