I've seen and used many an HDTV both in my house and in others.
I'm also quite anal retentive.
Basically here's what you need to know:
Color depth, contrast ratio, resolution, refresh rate are extremely important to how your eye sees a picture and differ MASSIVELY from TV to TV. Just because a TV is high resolution by being 1080P doesn't make it high definition in terms of it's handling of color and texture- only in it's handling of resolution.
There are about 7 kinds of TV available.
LED backlit LCD(side/edge lit or full array lit without local dimming)
An LCD panel back lit by an array of LED's rather than fluorescent bulbs. Increases potential contrast and brightness, reduces power use. Longer lifespan lighting than fluorescent.
LED backlit LCD (full array with local dimming)
As above but specific portions of the backlight can turn on and off, making for extremely bright and extremely dark areas on the screen simultaneously. This provides the best contrast ratio (better than plasma) in a large screen.
OLED
Best overall picture- but only currently available in tiny sizes. OLED uses organic TINY light emitting diodes making for true pixel on/off capability. This makes for a display which looks similar in terms of contrast to the full array local dimming LCD/LED but is even more accurate in it's contrast application due to the on/off pixels being much smaller than conventional LED backlights. Hope that makes sense.
LCD
An LCD screen (either TN/PVA/IPS etc-- it's wise to research these if you plan to go LCD/LED) with a conventional fluorescent bulb as backlight. LCD has a higher brightness (Candellas per meter square) than plasma, and is also a bit sharper. However, it has considerably inferior color gamut (the range of colors it can display) and native contrast compared to plasma.
PLASMA
Not as sharp as LCD, however, handles color much more accurately and effortlessly. Also current plasmas have the highest refresh rate (600Hz vs 480/240/120 for LCD).
The caveats of plasma are as follows:
Screen has a glass cover over it. Reflections can occur. However, if this TV is used in a dim room without windows shining off it, you're fine.
Not as razor sharp picture as LCD. Not as bright.
Advantages:
Way way way better native contrast ratio. Much more accurate and much wider color gamut. Much more natural looking picture. Not tiring on the eyes.
DLP
A texas instruments technology that reflects images off of a mirror. Bleh. I don't like the picture on them at all. Don't even bother.
Personally I recommend as follows:
Movies, high definition TV watching, light gaming:
P L A S M A.
heavy duty gaming as the primary use, then movies and TV
LED backlit LCD with local dimming
If you go PLASMA, make sure you get one with 1080 lines MOVING resolution. Many 1080P plasmas in the low end only have 900 lines moving resolution. This results in a slightly less sharp moving picture.
The Panasonic TCP42G10 is freaking rediculous good. Rediculous. It's wrong.
It has THX certified color
One step down,
Panasonic TCP42S1 does NOT have THX certification and looks less punchy and bright, however, still full time 1080 lines and excellent picture.
One more step down
TCP42U1 is still a very very very good screen with an excellent picture- but it only has 900 lines moving- however you can get it very cheap for your price range and still have a picture superior to a $2000+ LED TV in all measures except brightness and sharpness.
That sharpness is important. I would aim for the G1 if you want a nirvana-like viewing experience.
Current generation plasmas are EXCELLENT. Panasonic's plasmas are untouchable in your price range.
PS and PPS- when you transport your HDTV, make sure you do so in an upright position- especially PLASMA. All mfg's recommend upright transportation. Never lay the TV down to transport it.
Plasmas look like trash at the store. The store has about 400 bright as heck fluorescent bulbs. The room in your house where you will put it likely has what, 1? 2 conventional lightbulbs? Heavy curtains? The screen will look much better in your house. It's always smart to go into the 'home theater' room at the store if they have one and compare there.
Honestly if you're buying this TV for general family use- I sugest the Viera G1xx or the S1 in the 42" size. Exceptional bang for buck.
If you want to save some cash get the U1 and a high end Blu-Ray player but remember- the brightness is slightly lower as is the moving resolution..