I'm sure it will (but I don't have specific experience with that one).
Out of curiousity, you mention having a budget of only $200-$300 for DVD and Reciever, but you are referencing a $400 remote. Given those circumstances I would try and buy the best reciever I could using all the funds and then just get the cheapest DVD player I could find (think you can get some around $30 these days) and then work on other items later. Taking the $400 for the remote and the $300 you referenced can get your into some nice Denon gear which you can build upon over time.
You can use the remote that comes with the reciever (which should actually be pretty good and will work with the limited components you will have initially). The 890 will drop over time at least a bit (look at the 880) so you could save a bit there as well (and may not need the harmony as much until you get a more complicated setup).
I have the 880, so I am a big fan of the harmony, I'm just giving my opinion on how I would proceed with those constraints.
It depends on what is important to you and what you want this to look like over time.
A few you might want to take a look at in that price range (roughly):
http://www.amazon.com/gp/product/B00065HLY...5Fencoding=UTF8
This one is a bit higher than your budget.
http://www.amazon.com/gp/product/B00020M09...5Fencoding=UTF8
If I were to upgrade I would look at the Denon (I have a Harman Kardon system that has been good to me, and if you need to stay on budget I would think you would be happy with it). Both of the above has rs-232 control if you are planning on growing into a comprehensive home automation setup.
There are many, many more choices depending on where you want to take this though.