jakewash,
You can get a 40" Sony for $1400 at CC and its probably alot cheaper at costco. In the end, the quality of the picture will be determined by the money you put in. I've found Phillips, Dell, and viewsonic a great bang for the buck but the colors and sharpness weren't like the Sharps or Sony.
I frankly think 1080p is definitely not worth the money on a 40". Whether you can tell the quality difference with 1080p on a 42"... its a big maybe if you're picky and if you are then you can see the difference between the brands that cost more.
BTW, this is the first year 120hz is being introduced to a consumer level lcd tv and you're going to pay a $$$$ premium for it. Typically the 120hz are being coupled in the flagship tv in the manufacturer's tv line up.
