In this budget of your look for Htib from Onkyo model 3200 and Yahama avaliable around 20-25K and if you could up your budget uptil 45k then your will have a better AVR from Onkyo with HD audio decoding, model no. is 6200.
There is a model from Denon too avaliable in the above mentioned range.
Else you could also look at LG and Philips Htib which includes an Upscaling DVD player as part of their package.