I'll second the plasma. I have both plasma and LCD, and the plasma picture is noticeably better. LCD is a good choice for brighter rooms because it doesn't have the reflections that plasma does, and LCD uses less power so it's cheaper to run.

A really good 42" Panasonic can be had for less than $800

I started out with nothing & I've still got most of it left
M60 VP160 QS8 EP350
M22 VP100
Algonquins