Noob: Help me with 5.1 and a PS3 - Receiver options?

Hi all,

Thanks in advance for your help. I've searched this forum but couldn't find any definitive answers for my particular situation.

Background
1) I just moved into a condo I am renting which has built-in 5.1 surround sound in the living room (sub and built-in ceiling speakers)
2) I have a 42" LCD, digital cable and a Sony PS3
3) I don't have a decent stereo so this system is really for the TV and blu-ray discs
4) The condo has a built-in entertainment cabinet. The bad new is that the receiver would need to sit in the cabinet so airflow and heat dissipation could be an issue. Maybe a lower power unit / one with good heat characteristics would be better

I need a receiver which can handle the 5.1 and hdmi 1.3 but my budget is limited (under $200 target, up to $250 complete with my wife yelling at me)

Given this info, what would you recommend?
1) Should I pick up a craigslist receiver (bad idea)? How can I test it before purchase if it's not hooked up?
2) Should I buy a refurbished model? Bad idea?
3) Buy new?

What makes / models make sense for me?

Thanks!

Check out www.accessories4less.com. They specialize in refurbished equipment. I noticed several good Marantz and Onkyo receivers for $250 or less. You will not get much in your price range if you purchase a new receiver ( the refurbished units sold by A4L have been thoroughly tested by the original manufacturer, and come with a factory warranty ). I am also leery of purchasing something off Craigslist. If it's junk, you're stuck and have lost your money. IMHO, it would be hard to do better. :2cents

^^^ good advice. Audio Advisor will have deals on refurbished equipment as well. I'm all for refurbs, as they have been put to the test...unlike an assembly line where multiple new units slip by quality control.