help with buying this new tv i have in mind before i waste my money

i'm about to buy the (SONY KDF-E42A10)
Details:
» high-definition TV — receives and decodes digital standard-definition and HDTV signals from over-the-air broadcasts (antenna required) and cable TV service (CableCARD™ required)
» widescreen 16:9 aspect ratio
» 3 LCD panels, 1280 x 720 pixels each (all signals displayed at 720p)
» 130°(H) x 60°(V) viewing angle
» Cinema Black Pro with Advanced Iris for improved contrast
» Wega Engine™ video processing
» adjustable DRC MultiFunction V1 (upconverts non-HD signals)
» built-in stereo speakers (12 watts x 2)
» multibrand remote control
» picture settings memory for each video input
» 6 A/V inputs, including:
• 3 composite video (2 rear, 1 side)
• 1 S-video
• 3 component video (2 rear, 1 side)
— accepts 1080i/720p/480p/480i signals
• 1 HDMI digital audio/video input
» PC input: analog RGB (D-Sub 15-pin)
» 2 RF inputs (1 Antenna, 1 Cable)
» optical digital audio output for Dolby® Digital

i'm dying to know if this tv is worth 1700 because that is what circuit city wants for it and i'm not sure i'm just now getting into digital home entertainment. i have an xbox 360 and i want to get the best picture and sound i can out of it. i'm going to buy a new dvd player with upconversion also, what is the best resolution my tv can get being hooked up with the different types of connections. please someone help me before i waste my money on this tv. and about the audio, i have that under control, i know my audio, just not video.