If you're going for an LCD (which I would highly recommend over DLP or plasma, simply because its a proven technology), one thing to look out for is contrast ratio. Though I'm not very up on my TV specs, as I recall, the bigger the number, the smoother the picture will look on screen. While shopping around recently, I was advised by a friend "in the know" to not settle for anything less than 1000:1 for gaming purposes, so I'm passing along that advice to you. :)

Sony Bravia, you can't got wrong.

avsforums is the place to go for information. there are more experts there than anywhere else. Keep in mind with a DLP tv vs. an LCD or Plasma is your viewing angle will be significantly reduced. If you hope to view the tv from above or below or extreme angles from side to side, stay away from any kind of DLP tv.

As far as projectors go, there are some unbelievably bright projectors but you are going to have to spend 300+ for the screen and about 1500 to get a decent HD projector. You will still have issues with natural light washing out the picture.

 hahaha

Currently the manufacturers are going through a fall refresh for sets. AVS would be the best place to look into this sort of thing, however I do know a thing or two about LCDs.

Currently, 120hz is the big thing. It reduces blur considerably and makes the set far better for gaming. LED backlights are also breaking into the mainstream, and some even have local dimming.

120 Hz doesn't reduce the blur at all, you have it backward.
Actually, that's the refresh rate which is poor in every LCD out there, except the most expensive ones.
120 Hz LCD have better refresh rates, so there's no blur (and lag).
LCD are also the worst quality TV, with the worst black levels, screendoor, motion dithering, ... But some people prefer it's unnatural image, because it's more, uh, vibrant.
DLP is actually a good choice, if you're not sensitive to rainbow effect, that is.
If you want image fidelity (have the same image grain as in theaters for movies) then you can't go wrong with rear projection. But Sony Bravia SXRD (don't mistake this with the Bravia LCD, I'm talking about the rear projection ones, and not the newer slim SXRD RPTV ones which have visible geometry problems, because they are too slim) are the second best. The best are Pioneer Elite plasma for now, but that's far more expensive.
If you can find a Sony Bravia at these prices, and manage to not be sensitive to its defects (low or no green blob, silk screen effect, no 1080p@24 so you'll have judder), and can calibrate it correctly (with help from AVS if you don't know how to) then you'll have one of the best image available at these prices.
The only drawback is that I think it's more than $1500. So if you're not sensible to rainbow effect, I think a DLP will work right. Look at the JVC LCoS, they are a bit worse than SXRD RPTV, but perhaps more in these prices. DLP are definitely worse (less contrast), but still very good for these sizes compared to other technology.

Wow. It seems like someone post a thread like this every couple of weeks. Well here is the same answer I always give.

http://www.circuitcity.com/ssm/Samsung-40-LCD-HDTV-LN-T4065F/sem/rpsm/oid/175543/catOid/-12869/rpem/ccd/productDetail.do

 OR

 http://www.circuitcity.com/ssm/Samsung-40-LCD-HDTV-LN-T4061F/sem/rpsm/oid/174198/catOid/-12869/rpem/ccd/productDetail.do

Uh, no...

With 120hz a dark frame is placed between each full frame. Essentially you have 60 light frames and 60 dark frames. The blurryness of LCD is partically from the blur of the LCD changing frames, however its also because the display is always lit during these changes. With 120hz, LCDs essentially emulate what CRT's do, which makes blur far less noticible and makes movement look smoother.

Newer LCD's have black levels that are very competitive with Plasmas.

Also, 3 prism DLP's do not suffer from the screendoor effect, so if thats what your in the market for steping up to the higher model might be worth it.

READ THE FOLLOWING TO HELP YOU DECIDE:

LCD

Advantages

• Slim profile
• Lighter and less bulky than projection televisions
• Generally have higher resolutions than plasma displays: plasma displays were able to achieve the 1080-progressive, high-definition resolution but it required a 50-inch screen size. LCD's were able to achieve this with a 32-inch screen.
• Is not susceptible to burn-in: Burn-in refers to the television displaying a permanent ghost-like image due to constant, prolonged display of the image. Light-emitting phosphors lose their luminosity over time and when frequently used, the low-luminosity areas become permanently visible.
• Does not suffer from glare in bright rooms
• Can be mounted on walls

Disadvantages

• Poor black level: Some light passes through even when liquid crystals completely untwist, so the best black color that can be achieved is a very dark gray, resulting in worse contrast ratios and detail in the image.
• Generally have smaller viewing angles but this is improving due to advanced technologies like MVA and PVA
• More difficult, and therefore more expensive, to make LCD's with large screen sizes: LCD's rely heavily on thin-film transistors, which are often defective, resulting in a defective pixel. The number of defective pixels at which the LCD is determined to be unusable varies. LCD's currently have a rejection rate of about 50% but this is improving. A larger screen size requires more transistors, which increases the chances of yielding a defective LCD. This contributes heavily to a large LCD costing significantly more than its plasma counterpart of equivalent size. Technology advancements are slowly easing this problem.
• Typically have slower response times, which can cause ghosting and blurring during the display of fast-moving images.

Plasma Display

Advantages

• Slim profile
• Lighter and less bulky than projection televisions
• Easier to manufacture and cheaper at large screen sizes than LCD's
• Can achieve a true black because pixel can be completely turned off, resulting in better contrast, detail, and naturalness
• Better viewing angles than those of LCD's but this is quickly becoming a non-issue

Disadvantages

• Significantly more expensive than projection televisions
• Susceptible to burn-in: Burn-in refers to the television displaying a permanent ghost-like image due to constant, prolonged display of the image. Light-emitting phosphors lose their luminosity over time and when frequently used, the low-luminosity areas become permanently visible.
• Phosphors lose luminosity over time, resulting in gradual decline of image quality
• Generally have lower resolutions than LCD's: plasma displays were able to achieve the 1080-progressive, high-definition resolution but it required a 50-inch screen size. LCD's were able to achieve this with a 37-inch screen.
• Susceptible to reflection glare in bright rooms.
• Plasma screens run a lot hotter than LCD or projection, because of the need to heat the gas into a plasma. For this reason, plasmas cannot generally be mounted over fireplaces or similar hot areas.

Projection Television

Advantages

• Significantly cheaper than flat-panel counterparts
• Front-projection picture quality resembles that of movie theater
• Front-projection takes up very little space because a projector screen is extremely slim, or alternatively the wall could be used as the display medium
• Display size can be extremely large, up to hundreds of inches
• Projectors that are not phosphor-based (LCD/DLP) are not susceptible to burn-in: Burn-in refers to the television displaying a permanent ghost-like image due to constant, prolonged display of the image. Light-emitting phosphors lose their luminosity over time and when frequently used, the low-luminosity areas become permanently visible.

Disadvantages

• Front-projection more difficult to set up because projector is separate and must be placed in front of the screen, typically on the ceiling
• Rear-projection televisions are much bulkier than flat-panel televisions
• Lamp may need to be replaced after heavy usage
• Rear-projection has smaller viewing angles than those of flat-panel displays
• Rear-projection is susceptible to glare

IF It's Rear-projection, I DEFINITELY. wouldn't go there. If you get too far on the ground, or too high up, it looks like crap, gets dark, and you can't see crap. My friend has one. It's not good, especially for multiple people. I Reccomend. LCD. I have a 45" (or something close to it) and I love it.

Comparison of Different Types of Projection Televisions

CRT Projector

Advantages

• Not restricted to fixed pixel resolutions, able to display varying resolutions
• Achieves the best black level and contrast ratio
• Achieves the best color reproduction

Disadvantages

• Heavy and large, especially depth-wise
• If one CRT fails the other two have to be replaced as well to maintain color and brightness balance
• Susceptible to burn-in because CRT is phosphor-based
• Limited viewing angles

LCD Projector

Advantages

• Smaller than CRT projector because LCD chip is very small
• LCD chip can be easily repaired or replaced
• Is not susceptible to burn-in
• Better viewing angles than those of CRT projector

Disadvantages

• The Screen-door effect: Individual pixels may be visible on the large screen, giving the appearance that the viewer is looking through a screen door.
• Defective pixels
• Poor black level and contrast ratio
• Not as slim as DLP projection television
• Uses lamps for light, lamps may need to be replaced
• Fixed number of pixels, other resolutions need to be scaled to fit this

DLP Projector

Advantages

• Slimmest of all types of projection televisions
• Achieves the best black level and contrast ratio
• DMD chip can be easily repaired or replaced
• Is not susceptible to burn-in
• Better viewing angles than those of CRT projectors
• Image quality will not fade with time, unlike phosphor-based projectors
• Defective pixels are rare
• Does not experience the screen-door effect

Disadvantages

• Uses lamps for light, lamps may need to be replaced
• Fixed number of pixels, other resolutions need to be scaled to fit this
• The Rainbow Effect: This is an unwanted visual artifact that is described as flashes of colored light seen when the viewer looks across the display from one side to the other. This artifact is unique to single-chip DLP projectors.

 I'll have to agree with this. I've never bought, or even heard of, a bad TV product from Samsung. They're generally cheaper and/or provide more features than a Sony TV, too. 

 For reference, I just recently picked up a Samsung LNT2354H 23" LCD, and the picture quality, speakers, and number of ports (includes two of everything, including HDMI!) are all amazing. I definitely wouldn't buy from another company.

At any rate, whatever you do, I would definitely avoid the budget brands (Olevia, Akai, etc.), since, from what I've read, they tend to have a lot of DoA/defective units, not to mention subpar parts and components.