The room is ~13'x8'. I'm subtly () encouraging him to DIY the speakers (that's why I asked for receiver-only suggestions). I don't think the receiver has to include a DVD player, but if you recommend a regular receiver please suggest a DVD player as well.
If his sources are going to be digital, the Panasonic Digital receivers are supposed to be quite good. I'm not sure what they cost in canada, but there have been sales down here for ~$160 US.
The Phillips 642 is a fairly popular DVD player with Divx capability. I think I remember them not being the most reliable players out there though.
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