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A friend of mine is needing a new receiver that will take inputs on hdmi and component, and output on HDMI.. He doesn't need anything fancy, just something that does the above and 5.1.

I am guessing one of the lower end Sonys would be cheapest, but I can't seem to figure out which ones do this.
 

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In their current lineup, I believe the STRDH810 has the transcode/upconvert capabilities that you are looking for.
 

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Yamaha 565 and newer 567 does this. (aka 6250 and 5063)
 
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