Your receiver is fine then. If I were you, I'd start buying the Blu-ray discs I really wanted (they won't run away, will they?  ) and when I had the money try and get a good combo deal on a player and a Hi-Def screen. Oh, and avoid getting talked into some expensive HDMI cables. As long as your gear is not too far apart and you're buying HDMI 1.3 cables, you'll be fine regardless of price.

EDIT: in view of Ace's post, I was wrong - your receiver is not up-to-date then. In order to really benefit from Blu-ray, you'll need to replace your entire system.

I thought of something else today. I got my parents a Blu-ray player a few months ago and gave them my old receiver and have been leading them to believe that's all they are getting for Christmas. Today, i was checking a few Blu-ray titles to see how well their low-end player performs. I realized that most Blu-rays, while they strictly speaking work on an SDTV are designed with HDTV in mind. Specifically, the text is too small to read. I found that Digital Video Essentials was unuseable, I couldn't read the 300: Complete Experience menu and I couldn't read the stuff that popped up on the Watchmen Total Movie track. You can probably figure out how to play the disc, but some of the special features won't be useful and some menus may have a bit of trial and error.