Is this a good deal?!?

[PS3+HDDVD OWNER]

Ok, well i've been saving up for a home theater setup for my 42" Toshiba Regza hdtv. I've got about $1000 to spend right now... I already know everyone is going to suggest the Onkyo 605, which is understandable. My question is, will the Onkyo 505 do me justice for what i am looking to do? I'm planning on running my Hddvd player and PS3 to the Onkyo, and am wondering if maybe i could save $100-150 buying a little bit of an older reciever and put that extra money towards quality speakers. Considering i really dont want to pay a cent more than $1000, would going with the 505 be in my best interest? I've noticed that both the 505 and the 605 have HDMI compatibility which is obviously a huge factor. Here is the link for the 505, with the 10% off deal i could probably score the reciever for around $200 !!

http://www.circuitcity.com/ssm/Onkyo...oductDetail.do


What do you guys think? And any speaker suggestions keeping my $1000 TOTAL budjet in mind?