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The basic deal between 720p and 1080p is this: they look the same on HDTV screens smaller than 40 inches, with one important qualification: if you plan on using your screen as a laptop display, as I do, you will notice the difference - e.g. 1080p does look sharper than 720p on my 1080p Sharp Aquos TV. For gaming, though, there's practically no difference.

On really large screens, 1080p looks better, so you'd want to go with that. It just depends on what kind of HDTV you have, or plan on getting.