"Out of all the pictures I've seen so far the Sony looked best but I still worry about the bulb going out after weeks. Do they pay for the new bulb with the extended service contract? or do you buy it and they install it?"

With the service contract (at least with the one I bought from Circuit City) they come to your house on the day that you call (7 days a week) and bring some parts to do minor work in the house if possible - if not, they take the TV and bring it back when it is fixed.