VectorVictor
Donor
To nitpick, 720p and 1080i aren't the same thing, and there is a discernible difference, depending on who is providing the channel, the method of compression, and what you're broadcasting for.720p and 1080i are the same for the resolution, for all intents and purposes. The letter matters. p = progressive scan, i = interlaced. And 1080i really are not made anymore. 720p and 1080p are the spot where there is a difference.
You're right that 720p is used for sports, and that's because 1080p broadcast hasn't been adopted yet and 1080i has a lot of artifacts for fast-moving events (e.g. Sports). However, for movies, 1080i is more than discernible (if you have a quality TV provider and television set) from 720p, and most HD channels are broadcast natively in 1080i (MSNBC, Fox News, CNN, BBC America, any of the Kabletown channels (e.g. Syfy, USA), TBS, HD Net Movies, AXS TV, off the top of my head).
Also, if you're not seeing a difference, then also check your cable box/DVR--you could be automatically down converting. This happened to me until I found out how to 'fix' my DVR (via service menu) to allow native passthrough.
The buyer needs to be sure that their TV can handle 1080i, as most of the non-sports cable channels outside of the Disney stable are broadcast in 1080i. It may not be a big deal for the OP, since I would presume he's a sports fan, but the Mrs. may not appreciate a washed-out mess watching a 1080i channel on a TV that half-assed their 1080i processing.
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Chaddyboxer--congratulations!
As for procuring a set, go SSV: Samsung, Sharp, Vizio (if you're going economical).
What Strigori said about Plasma vs. LED is right, but also consider wall mounting and, if you're renting, the weight issue that was mentioned.
Also, make sure to scour NewEgg.com and Amazon.com--they both have white glove service for delivery, and their prices typically meet or beat local brick and mortar competition (including Nebraska Furniture Mart). Sears is also good in that they'll price match *and* give you sale percentage discounts on top of the matched price, though their staff is barely more knowledgeable than a Best Buy staff member.
And stay away from Sam's Club, Costco, and the like--they typically are hawking older sets with spiffed-up chasis and/or older models to make them look current and at a discount, and Sam's Club returns have more hoops than a Jersey Shore girl's earring drawer.
Finally, seriously look at getting a quality AV receiver with the TV (Onkyo's give you best bang for your buck, anymore)--this way, you only need one HDMI connection from your receiver to the TV, and your AV receiver does all the switching. It will make cable management, especially if you wall mount, *MUCH* easier. Plus, you're set for surround sound when you want to get the speakers, and you can bitstream from your Blu-Ray device for lossless audio.

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