Reddit mentions of Panasonic VIERA TC-P42X3 42-Inch 720p 120 Hz Plasma HDTV

All Blu-Ray movies and pretty much every PS3 game (that I own) supports 1080p. The difference is pretty big at any screen size above ~30", but you're looking at more then $100 difference for the same size between 720p and 1080p. This 32-inch 1080p is going for $360, which is pretty good. This 37-inch 1080p is for $460.

For some 720p vs 1080p comparisons, here is a 42-inch 720p for $500, versus a 1080p version for $600. I recommend spending the extra for the 1080p if you can afford it, its worthwhile.

Panasonic's tends to make budget level HDTVs, but they have excellent reviews. LG also makes relatively budget HDTVs. LCD is cheaper then LED as a rule. Look through this list for some ideas at the range of options, just make sure you read reviews first - don't even consider and HDTV without good reviews, there are too many good alternatives.

This.

Being some one who's owned LED-LCD, LCD, Plasma and CRT. The image quality of Plasma's can't currently be beaten, it just can't. The Panasonic Viera is what I currently have in my living room and I'd only ever replace it with another high quality plasma or OLED (if it lives up to the hype). The one I linked is only a few inches smaller than mine but is essentially the same model. It's a gorgeous TV with great sound and anyone would be happy to have it.