His profile says he's a student. When the guy says he wants to spend $300, you have to try to work within that limit. Immediately suggesting he triple his budget isn't very helpful.
Actually, if he's going to spend that kind of money, he should spend most of it on the speakers. They'll affect the way his system sounds more than any mass market receiver (except for a select few, which I'll get to later).
Receivers don't really "grow" with your system, and unless you have really nice speakers (tough to do with a $1000 budget), the minor differences between receivers from different brands won't be that apparent.
Denon and Pioneer receivers are underpowered (their rated specs are usually worthless exaggeration), so if you plan on cranking the volume, go with Yamaha or Harman Kardon. HK's often test higher than their rated output.
Never underestimate the importance of high wattage--as long as it's accurately reported, that is. You simply can't beat Harman Kardon in the mass market when it comes to power.
6.1 is overkill unless you have a large room. My theater is 15' x 14', and I have a 7.1 setup. I did that because I have a serious disease. For most people, it's not necessary.
I recently sold about $15,000 worth of A/V gear and scaled back my system to recover some funds. I learned that more money doesn't necessarily translate into better sound. I replaced $5,000 worth of M&K THX Ultra speakers with $2,200 worth of
these--complete with shipping and nice solid stands--and couldn't be more pleased. They sound even better than the M&K's and cost far less.
Your absolute best bang for the buck in receivers today is one with digital amplification. Panasonic makes two models: the
SA-XR50 and the SA-XR70. What you might find interesting is that there are many audiophiles who have replaced $10,000+ worth of preamps and amplification with these little bugdet receivers. The reason they sound so good is because digital amplification lets you take digital signals such as Dolby Digital, DTS, and PCM (from CD players) and amplify them digitally. Background noise is drastically reduced.
If you're going to spend around $1,000, do yourself a favor: get the Panasonic XR50 and a set of
these. Impossible to beat at the price.