HDTV, input devices for HTPC

I'm thinking about getting a 40"+ 1080p LCD HDTV for an HTPC setup but I want to know a few things first...

How would the setup be for web browsing and word processing? I plan on sitting maximum 8 feet away from the display, and will mainly use it for gaming/movies, but I want to know this aspect as well.

What do you guys use as an input device(s) for games and general PC use? I think I would rather have a joystick than a trackball or trackpad for cursor tracking... but what is the best option? There is also an Xbox 360 controller for windows, how is this?

I use a MS Elite Bluetooth mouse and keyboard combo.

I use mine for a do all when the other rigs are tied up. Good wireless everything and dont go cheap, the bluetooth is probably the best option.