From the new crop of TV's you could go for either the Sony KDL32W5500, full HD, built-in freeview, 4xHDMI, DLNA enabled (network ready) and 100Hz. Retail is $2300 but you'll own it for under $2k. The other option is Samsungs LA32B650. Almost identical specs to the Sony model, including price. The most notable difference is the appearance of the panels. Samsungs 6 series and above use a very reflective panel, which can mean a lot of glare issues if you have a well lit environment. Sonys panels have more of a matt finish.
You may be able to pick up some of last years models at a sharp deal. Any Sony W4500 series in 40" or above is a decent TV, 100Hz, full HD and built-in freeview. Unlike the 5500 series the USB port will only playback jpegs and mp3's, not movie files. Sony's V4000 series is worth considering as well, same basic specs as the W4500 but no 100Hz and smaller colour range.
As far as last years models from Samsung, any 5 series or above is Full HD, if it has a 'D' at the end of the model, ie LA37A550D, it has built-in freeview. 6 series has 100Hz but reflective screen. Supposedly Samsungs pixel refresh rate is amongst the fastest, the 5 series at 5.5ms and the 6 series at 4.5, where as I've heard, but may be mistaken, that Sonys is around 8ms. Both companys produce good TV's for their price and beyond.
I wouldn't recommend Plasma for your use, as they still suffer from burn-in and games consoles are the most common cause of this issue. Some of the better models, ie Panasonic and Samsung, have modes where they remove the burn-in but it's still a hassle.
If you can afford it go 1080p. DVD is a dying format, full HD is becoming the norm. Blu-Ray movies are everywhere now, HD recorders are now on the market, Blu-Ray recorders will be here soon.
If you're using it for gaming, I suggest going to an LCD, ideally 100Hz. Not so much for gaming (although it will improve quality of fast moving images) but for general viewing. On a 50Hz set the moving picture is made up of 50 static images a second, which can cause a loss of image quality with fast-paced action. It can also cause image jumping, where a moving image may noticeable judder across the screen. 100Hz TV's obviously play 100 images, each slightly manipulated from the previous, giving a smoother more realistic image.
Built-in freeview is now installed on most new panels.
As far as distance is concerned, there is a rough guide that for every metre you are away from your TV allow for 10-12" of viewing area. It is just a rough guide, we are all different. However using that guide would suggest a set between 32" to 40". But that's entirely up to you.
LG are a decent quality brand, but IMO not quite at the level of the the others I have mentioned. However expect to see an improvement in the range this year.
Contrast ratio is a minefield, it depends on so many variables that you can't really compare two different brands together. Use it as a guide but let your eyes decide. Dynamic contrast ratio is different to standard CR, and gives a higher value. If a TV has a CR of 15,000:1 it has roughly 15,000 steps between the darkest black and the brightest white. Dynamic CR is measured using moving images and as I stated results in a higher ratio. Samsungs 6 series from last year had a 60,000:1 DCR in the 680 series. Their new LED backlight model now has a DCR of 3,000:,000:1. It is noticeable, but it is new(ish) technology.
As far as a reasonable price for an HDMI cable, everyone has their opinion on that. Don't pay the retail price, and shop around.
Ah fun on Friday night with the flu.
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