Take a look at the JVC RX888V. The mass market retailers are selling it for about $500, so I bet you could find it for around $350-$400 range. I have the older non-DTS 884 model; I got it for about $330.

The 888 does Dolby Digital and DTS, has a nice on-screen configuration display, and does S-Video switching. I presently have my 884 running DVD, DishNetwork, and PlayStation - all in S-Video. One thing I like about it is that it remembers your settings for each input, like volume, surround settings, etc.

But whatever you do, if you want your sister-in-law to love you too, pick up a nice universal remotes like the Cinema7. With all that gear, the remotes multiply like bunnies. Heck, while you're at it, buy 2 - one for each of them!