Please help me spend some money.

I was hoping to get some help spending some money updating my system:eek::D. I currently have a Pioneer VSX-D602s that has pre-outs (Front L/R, Rear L/R and center) which from hanging around the forum for last month many of you recommend having. But in my case are they good for anything or am I better getting a new AVR? I currently have Polk Audio RT16’s for Fronts, Polk Audio CS350 center, Polk Audio LS f/x surrounds, and a Polk Audio DSW Pro 600 sub. I also have a Panasonic TH-50PZ700 plasma tv which unfortunately I don’t get to take full advantage of because I have nothing that is in HD. I use the system for about 60 % HT and 30% radio/cd and 10% WII. I would like the option of trying a 7.1 set up but my room (16x12) might not be large enough to be different from the 5.1. But never know I might like it or space could be made in other places. I had a chance recently to listen to a Pioneer SC-25, Pioneer VSX-23TXH and an Onkyo TX-NR3007. The SC-25 stood out in the setting I was in but don’t know if it would be overkill for my current needs. I would also like the options of HMDI connections and networking (Pandora another great find I learned from this site) but may be able to get their through a PS3. My budget would be around $1000.
I would also like to thank all of you for the help you have already provide through the many posts that I have read and look forward to and appreciate any recommendations you might have.:):)