[quote name='Karuto']It's totally up to you. What room are you putting this in? Honestly, anything more than 32" is a little too much for me, but that's because I'm putting mine (when I get an HDTV) in a dorm room or in my bedroom. Anything more would just be too outside my range. Unless you're putting this in a family room, I'd say go for smaller. You'd save hundreds of dollars, and there are always really good smaller HDTVs.
This one looks pretty good to me:
http://www.amazon.com/Sharp-Aquos-LC32GP1U-1080p-Gaming/dp/B000NKAYWG
You get 1080p, a 10,000:1 contrast ratio (the Sony Bravia has 7000:1), and is built specifically for gaming and reducing video lag. It got a 7.2/10 from Cnet Reviews.
But hey, if you want to get a really good 40" for a little over $1300 if you did what I mentioned, you can definitely go for that as well. You won't be able to achieve full benefits of 1080p without a screen of this size or more, anyway.[/QUOTE]
Don't be fooled by dynamic contrast ratio. A 10000:1
dynamic contrast ratio is just a marketing technique. Most LCDs can't do more than 2000:1 actual contrast ratio and 1000:1 seems to be the most common number. We won't see real contrast ratios like that for a while (Samsung is supposed to have a 10000:1 contrast ratio LCD out soon though).
As for size, yes, it does matter. The high the resolution, the more pixels a screen has. 1080p on a 32" isn't as noticeable as 1080p on a 52" screen. The larger the screen gets, the larger each individual pixel becomes so if you get a larger screen, then it's better to have more pixels since that means more clarity. It also depends on how far from the TV you sit... the closer you sit, the detail you'll notice and hence, it's better to have more pixels.
Take a gander here for more info on screen size, resolution, and sitting distance.
http://www.carltonbale.com/2006/11/1080p-does-matter/
I personally have a 32" Sharp Aquos that I got recent and it's fantastic. But the Bravia line is much better these days, especially for anything over 42". But the Bravias are expensive, I only paid $780 for mine. It only does 720p but that doesn't matter to me since I don't plan to sit 2 feet away from my TV.