60hz or 120hz in a new TV?

Sporkis

Barley Legal
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With the deals going on I've been thinking about up picking up a new tv, and want to get some opinions on the subject.  I currently have a 24 inch 720p 60hz LCD set up in my etertainment room, mainly used for console gaming and blu/dvd movies.  I want to upgrade to a 32 inch(which is the largest size I can go in there) 1080p LED, but wondering if I should shell out the extra bucks for a higher frame rate.  I do tend to notice the motion blur some on my current tv(especially when watching anime) and it kind of irks me, but don't want to waste the extra money if it's not going to make much of a difference.

 
Not sure it's due to the 120hz but I upgraded from a 32" 60 to 50" 120 and it has this super annoying judder when the camera pans around. I have tried all the motion settings, some of them mask it pretty well but as a result I get that soap opera effect that makes it feel like you're in the room with the actors. Not nice.

Like I said, not sure if this is due to the 120hz.

 
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