yeah honestly 720p will still look fantastic especially if your getting a samsung.  really at 42 in you don't need 1080p but it is nice to have especially as more games take full advantage of the resolution cause many right now are only upscaled.  Basically if money is a problem then stick with 720p cause like you said a 1080 can cost considerably more for not much noticable difference between the two on a set that size 

So if I have a small TV like a 20" or 27"...1080p doesn't really make a difference at all between 720p?

 Of course it does, as long as u sit close enuff to the screen. Why do u fink PC guys upgrade their 22inch to 24inch for (1680x1050 res versus 1920x1200 res)?

@Slimebeast

I sit far away from my screen. I actually own a 20" Insignia HDTV that puts out to 720p and 1080i. I have my HDTV set for the PS3 and Xbox 360 to 720p.

So will me upgrading worth the admission. Cause really I'm satisfied with the HDTV I have.

Do I need a 1080p television?

No. If your distance to the screen is more than 4 feet (rufly) the diffrence between 720p and 1080p is hardly noticeble.

EDIT: if we're talking 20-24 inch screens that is. On a 27 inch screen and with a 4 feet distance you would see the difference.

1080p is better, even on smaller tv's.

720p:

You can set your PS3 settings for 1080P under display settings although most of the games out today play in 720p. The PS3 will play it in the highest setting available for that game. Lair plays at 1080p and I believe MGS4 does as well.

Depends what you want. DLP is cheaper and best bang for the buck.

I got this for 2200 canadian tax in http://www.samsung.com/ca/consumer/detail/detail.do?group=tv&type=tv&subtype=dlp&model_cd=HL67A750A1FXZC

Considering the weak canadian dollar that works out to...1800~ american

LCD and Plasma of this size (60+) cost 2500 and more american dollars.

46" or higher go 1080p

42" or lower go 720p (save the extra dollars you wont see much difference)