I am in the same market: looking for a high end Receiver for 90% ish home theater.
2 weeks ago, I demo'd at a high end local shop, an Arcam AVR350 running Paradigm Millenia's and then in the next room, a B&K507S2 running the same speakers. For Movies, they both sounded nice, but once I put in a CD I was very familiar with, the Arcam actually sounding annoying. Completely flat and lifeless. The B&K however, in comparision, sounded really good with the Paradigms.
Since basically everyone loves the Aracam, I know it is not a bad piece. It must have been the synergy between it and the speakers that did not work. I would definetely recommend the B&k 507, however there are NO HDMI inputs for you.
Here's another thought. Wouldnt it be better to connect each of your sources direct to the TV? That way, you have individual video/picture settings and control for each input. I am positive you will not want the settings the same for the HD/BR DVD and the 1080i cable box. I am certainly no expert on video switching so take my idea FWIW . . .