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i say invest your money right..especially if you really want to utilize what the ps3 is capable of..do 1080p in 40" if you have the funds for an lcd..in a 32 since the everything is soo concentrated and like mention above..depending on where you sit i doubt you'll tell the difference..otherwise a native 720p tv can do 1080i.
1080i vs. 1080p.... it really depends how critique your eyes and what you see on a day to day bases. I work in a home theater department and I see blu-ray. .. i see upconversion.. i say 1080i... i see 720p........at times I see things where people think Im crazy..(my own employees). however 720p vs 1080i I can hardly ever tell..unless its extremely fast motion ..(depending on tv too).. but 1080p vs. 1080i it seems more of a smoother picture..sounds crazy..but thats what I've noticed. rule of thumb for size..2.5x's the size of your screen that you're looking at is the closest you ever want to be to that tv.
all and all...it really depends how much you want to spend... tv brands..do matter imo because they manufactuer tv's a whole lot longer..look at specs..see them physically before you buy anything. if it comes to it..like mentioned above..dlp will accomplish a lot what lcds can do but w/o paying an arm and a leg. but dont forget there are lamp replacement and they range between 250~350 on average every 3000 hrs. sorry for the ramble..hope it helps.
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