Help building affordable 2.1 system!

if you want the receiver to decode audio over the HDMI inputs, then you are going to have a problem. Any a/v receivers in that price range are going to be "pass-thru" HDMI for video only, you would still have to install a Toslink optical or digital coax for multi-channel audio.

The only thing that comes to mind in that price range is the Sony HT SS360 HTiB, but that is a 5.1 system with marginal power and speakers.

But, a point to clarify.....you want a 2.1 system (stereo with subwoofer) that will eventually be a full DD 5.1 system ??? Is that why you want HDMI audio ?

I don't know how you are going to accomplish that unless you go for a HTiB or scour places like craigslist and ebay. I see some pretty nice receivers dumped for cheap all the time on the used market, so I don't think it will be that hard to snag a receiver like that for $250 or so, as long as you are diligent in your search.

Onkyo SR507 (find best internet price) and a pair of Polk Monitor 30 bookshelf speakers from www.newegg.com

Polk M30's can later be used for the two surround speakers when you add the "front 3"