I second the panny plasma recommendation.
I have had a few LCD and plasma sets over the past few years, and IMO only, there is little to compare to the panny plasmas at that price range (and even beyond).
I recently sold my samsung plasma and bought my second panny. This one was a 1080p 42 incher. Very accurate colors, great PQ, easy to set up. My other panny is 720p and it is good too, if that is more in your budget.
If that is not what you decide on, the sammy plasma was a good set as well, just not as good as the panny (again for me).
As far as LCD goes, they look great in most cases, and most would be happy with them. For my setup, and for what I watch most (sports and movies), the plasma sets just have a smoother picture, and more realistic looking colors when set up correctly.
Good time to be buying. There are great deals out there. Makes me want to buy another one...lol