The way I see it is, if the TV that you're buying is smaller than 40inch, you will not spot the difference between 1080i and 1080p from the usual distance (your sofa).
The hd tv shows are broadcast in 720p, so if you want to watch tv, don't bother with a 1080p.
if you want to use it as a PC monitor, go 1080p, as you will be sitting really close to it and your PC will use all those pixels.
If you have space for a tv bigger than 42inches, then go 1080p, as at those sizes you could star to spot a difference, but just if you play content that it is 1080p, which are HD movies and just a few games of the 360 and PS3 (If you see behind the box, you will see that the majority of games are 720p).
I live in London, small apartment, I would go for 32 - 37 inches 720p
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