I think the onkyo 506 that saturn mentioned is a pretty good deal. And like Allnatural said, you'll be hard-pressed to find a receiver that will decode HDMI audio that fits within your budget. If you are using a PS3, you'll have to to use an optical cable. Of course, you won't get HD audio.
If you don't mind refurbs, shoponkyo.com has the 506 for $199.00. For first time buyers, it'll be 189.00 and then there's a 10% discount on all refurbs until 12/26. So, you could pick up a refurb 506 for around 170.00.
If you are wanting HD audio, you'll have to look at receivers like the 576 or 606, which both seem to be out of your budget unless you can find a cheap refurb or used.