Can you really tell the difference between 1080p and 720p on TV's smaller than say 46"? A 720p is about 300 bucks cheaper than 1080p 40" i was looking at and someone told me at that size 1080p is useless. At what size do you really see the difference?
I really don't know the exact answer but I have a 40" Sammy 720p and I don't think the picture could be any better. Have you compared the two resolutions in a store on same sized set that you're interested in? Trust your eyes and save your cash for a nice upconvert DVD player ($100) for it.
At 40 inches screen size, the advantage of 1080p may be visible if you sit about 5 - 7 feet or closer: This article discusses the relationship between resolution, screen size and viewing distance - and when 1080p matters: http://www.carltonbale.com/2006/11/1080p-does-matter/ I sit about 15 feet from my 110-inch screen so I can appreciate the advantage of my 1080p projector.
