I have a 42" HP Mediasmart LCD TV, Its a full 1080p. I was told to go with LCD over a Plasma because my living room is brightly lit most hours of the day. It has less glare.
When I bought it I also picked up a LG 2.1 surround setup and a PS3. They are all connected with monster HDMI cables. I know most say they are a rip off but whatever Id buy them again even at 100 bucks a piece. We also have comcast HD cable, its definitely worth the money if you own a 1080p TV.
I would have to say when I bought the TV last year that it was HUGE but it only took a few weeks for me to start wishing I went a little bit bigger. I would say figure out what TV you want then go a little big bigger 
The best part of the whole entertainment setup I have is the surround sound in my opinion.
Jimmy
I have a 8ft rocketfish HDMI cable that I can sell