I'm actually debating which of these two receivers to buy as well (well actually I was looking at the HK325 as well, I believe it's similar to the 525 with less power).
I'm not personally concerned with the component video switching since it doesn't affect me. I see the main feature differences being the SBL/SBR 7.1 setup & ProLogic II support with the HK as oppposed to the 6.1 rear center for DD with the 1050, I really don't know which is better. The HK also allows finer Bass Management control, it seems handy if your speakers have a mix of frequency responses.
I've been happy with HK in the past(AVR30) but in recent years they certainly appear to have had quality problems. Just the sheer volume of refurbished HK 320/520 units on ebay worries me. I don't know if the newer line is any better but I believe they are all built/assembled in NA now.
If it didn't cost so much to get the 1050 shipped to Canada, I'd probably go for the 30 day tryout.
Raider & sfw, can I ask what models of HK you had problems with?
Good luck,
Howard