Do you mind used?
Ebay, especially lately, has become really good for buying A/V equipment. Since you don't have a 3D TV, there really is no reason(other than just having to have "new") to have HDMI 1.4.
HDMI 1.3 debuted in 2008, that gives you 5 years of stuff to look at.
If you don't mind used, you can search Ebay receivers, then type in the search "upconversion HDMI" (make sure it is advanced so it goes in the body, not just the title).
I bought for my cousin a TX SR707 for $305 w/shipping a couple weeks ago. Much better than ANY new receiver at the price...if you don't need ARC or 3D. Which your TV supports neither.