Don't have any experience with this unit, but it is pretty entry-level - that may be OK for you. Have you seen this http://www.hificlearance.co.nz/pdf/hificlearance-productlist-2009.pdf ? They have the 607 for $995...
On paper the 507 ticks the right boxes. I suppose you know that and that's why you're asking for opinions. Someone on here bought one a while ago, there's a thread somewhere...
Here's that thread I was thinking about. A few opinions there...
P.S. This years entry-level is last years mid-level anyway. By that I mean, features that you needed the higher up models to get filter down to the entry level models as time goes on. For example, HD audio (maybe HDMI audio processing at all) would never have been on a model this low last year.
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