I recommend a 32-42" LCD with 1080p resolution.
I was under the impression that 1080p (the latest technology) is overkill. A while ago I was reading that most signals you recieve are not 1080p since it requires so much bandwidth to transmit. On the other hand 1080i (somewhat "older" technology) is what most cable/satellite companies are providing.
Has this changed? Are most signals provided now in 1080p?
Also, for viewing faster action shows (i.e. sports) the refresh rate is an important spec.