HD-Ready or Full HD

So my family is planing to buy a HDTV, and since I am the "tech guy" it falls on me to do all the research and make sure we get a decent set

I have been doing some research and learning the basics of HDTVs and I have decided the following

I will be getting a 40/42" LCD TV, since it suits us better than a plasma and LEDs are still expensive

Now the main problem I am having is wether to go with a HD Ready set (1366x768) or a Full HD set
I have read alot of conflicting info on this so I want to get your opinion on it

Here are the main points I think are important
--We will be sitting 5-10 feet from the TV (mostly 7-10).

--All the tv currently available in Saudi Arabia is standard def, and will probably continue to be for at least the next 1-2 years (with the exception of one sports channel)

--We will be watching DVDs, and .avi files, but not many Blu-ray, at least
not until they become more popular here, and even then my parents aren't movie buffs so

--My brother recently bought a Ps3 so he's pushing for full HD even though I have read most PS3 games upscale from 720p anyway

--We will probably connect laptops to watch stuff as well

I think we would be better off with a HD ready set, since most content will be standard def / 720p, and from what I've read that will look better on 720p
Also, the difference can be used to get an upscaling DVD player

Finally, I haven't read any specific model reviews, but once I decide between HD ready and Full HD I will go to local shops, see which ones are available and choose the best

Thanks alot