DVD and Receiver - Space constraints

[sma1001]

I was all set to buy a DVD receiver when i was advised that its better to split the DVD and receiver because the DVD tends to "go first" possibly leading to the whole unit being replaced.

My issue is space. I only have two "holes" in the unit which are sized:
(HWD) - 140x310x490
(HWD) - 140x480x490

So there are two constraints: (1) the width of one unit - no wider than 31cm (2) the height of both - no higher than 14cm. The second of these appears to constrain the receiver choice.

I expect it's harder to get a narrow receiver so assume that slot should go to the DVD.

I'd like the DVD player to feed out through HDMI and to upscale to 1080p (if poss) and to play audio CDs. Main use here is as home cinema.

The main use will be to link to the TV (Full HD Panasonic plasma) and the speakers (starting with a 2.1 q acoustics compact set - 1010i and 1000s).

I also have Sky HD which i'd like to link to the receiver/speakers. That takes up the other slot in the unit.
Any suggestions?

For info i had been about to go for the Onkyo DR-s501 (DVD receiver) until the guy in the shop suggested i should separate the DVD player.