I have the Onkyo 606 (7.1) receiver and I really like it. Hometheatermag reviews it here: http://hometheatermag.com/receivers/808onk/
The 607 you want is basically the same, except with 7.2 instead of 7.1. I wired my house 7.1, but in hindsight I should have gotten a THX amp because it "uploads" a 5.1 signal to 7.1 much better. Good ol' Lucas. I'm quoting a friend of mine below for a similar question:
Regarding speakers, if you know your way around a work bench, and with a budget like that I'd build my own speakers.
Well you might be able to get the boxes cut relatively cheap locally depending on who is in your area.
I'd use 5 of these any day, and honestly you could get by without a sub for a long time as long as you don't have insane bass requirements. They'll do bass heavy music very well, low frequency explosions not so much but they'll certainly let you feel it. But that's in addition to having exemplary sound quality for the price.
Tough to beat, imo.
Otherwise, I'd be checking out some of Paradigms lower-end stuff. Always been a fan, though I haven't heard any of their newer models.
Edit: Scratch that "five of these" bit. Ever since making my own speakers I have never seen a need for a center channel, provided the room you have your surround setup in is of decent size. Virtually all receivers will send the center channel signal to the front left/right speakers if you shut it off. Sounds much, much better in my opinion and saves you the additional cost. Soundstage is vastly improved and you don't lose any 'action' sound across your mains, it sounds just like the center is there but much more natural, much smoother.
Just my thoughts on it, I'm sure others have tried it as well and may have their own to add to this...