There are a lot of receivers to choose from, so it's important to understand the various features and functions that make some models more expensive than others. Here are some things to look for when shopping:
Surround sound: Unless you're only going to listen to CDs and your old record collection, it makes sense to invest in a model that has Dolby Digital and DTS sound. With one, you can enjoy DVD movies in theater-like surround sound, along with new high-resolution, surround sound music formats SACD and DVD-Audio.
Optical/coaxial digital inputs: If you choose a surround sound receiver, make sure you have enough of these. In addition to DVD players, you'll need additional inputs to get surround sound from PS2, Xbox, and many digital cable and DIRECTV receivers.
Component video: Get a receiver with these inputs and outputs if you already own or plan to own a digital TV. You can use your receiver as an extra set of high-definition inputs for a progressive-scan DVD player or HD receiver.
Discrete circuitry: Separate transistors, resistors, diodes rather than integrated circuit chips. Sound quality will be much better on these models-don't be dissuaded by the lower wattage numbers.