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i think there is a big difference. if you do the math a 1080p tv has twice the resolution of a 720p tv. however, so many ppl who shell out the extra $ for 1080p never use it. right now the only way to get true 1080p is through blu-ray or hd dvd, so if you aren't going to watch those, then get a 720p, personally i can't tell the difference much in 1080p games vs. 720p games. i havn't played lair, street, or pirates, just a few 1080p dl things. 1080p with movie watching though is a big step up from 720p. also the screen needs to be at least 40 inches to get any effect.