I need to buy a home theater receiver for watching movies (Movies 90% Music 10%). I have a budget of about $400. I'll be using HK HKTS 7 Home Cinema Speaker Systems and currently looking at kenwood VR-8070 and onkyo TX-SR602.
Are you planning on using those speakers or upgrading soon? They sell for US$333 to $US399, so I personally wouldn't spend US$400 on a receiver for them. I tend to spend more on the speakers than on everything else combined.
I might be tempted to go for something like the factory refurbished Denon AVR-1705 for $222.64 at ecost.com. It's this year's model and has many features like video upconversion to component. I have not heard it, but it looks interesting.
digital...I would suggest that if you want a Kenwood receiver, then you can pick up the Kenwood Sovereign VR5700 or 5090 from www.ecost.com for a price that is near your budget. If not, I would go with the Pioneer 1014tx that you should be able to find for $400, or you could look into H/K Avr 230
I have no experience with the speakers you mention, but the receivers I mention fit many systems. If your speakers are overly warm sounding then they may not fit but I imagine that these combos would work.