This kardon AVR20 II is old.  (Dolby Pro Logic)

Buy new AVR that can decode HD audio.

Sorry bro...I've got nothing against old skool amp. but you should sell it at Cash Converter and use the small amount of money and save for the current generation amps...I know it will hurt your uncle's feelings but well..the amp features is seriously lacking.

But then, if you are going to plug in your PS3 to it and think that its good enough well..keep on using it.....but still save up for a new AVR

Probably RM200...but you can try your luck at Mudah.my or just go to Cash Converter to get easy cash.

Budget RM2~3K oledi can get good one...but remember, you will need speakers, Subs, cables etc.

Do some homework first and tell us what you want..

As a basic, new gen AVR have HDMI 1.4 and HD audio (DTSHDMA and DOLBYTrueHD) capable...100W all round speakers will get you started.
Most AVR are now 7.1 capable also.