I see that you found the TV I recommended, only it's $100 cheaper now.
Regarding contrast, read this link:
http://en.wikipedia.org/wiki/Contrast_ratio (static is another name for true)
You asked for a TV + stand in the $900 - $1000 range. Pick up a $100 stand and this'll be a $700 package.
At 32" you will not see a lick of difference between 720p and 1080p unless you glue the screen to your face, but I'd imagine you're at least 5 feet away so it having 1080p or not is moot.
If the primary reason you want the TV is for your 360 Wii and PS3, The tuner and 1080i mean nothing to you. Why would you display the consoles in 1080i when the TV is just going to downscale it back to 720p? (1366 x 768)
Regarding the PSP, I myself wouldn't get one, but if you want the piece of mind grab the 2 year for $120 (there is no 1 year option, at least not online) If something is going to go wrong with the TV, it'll happen in the first two years I'm sure. Plus even if you add the PSP, you'll still be under your budget at around $820 + tax.
You mention you'll be using all 3 consoles? You have a problem. The TV only has 2 component inputs. Since you're still under your budget at this point this is what I would recommend:
- Assuming you have component cables for all three, you can pick up a component switchbox. (what I wouldn't do)
What I WOULD do is this. If your 360 is newer and has HDMI output, grab a couple 6 foot HDMI cables off of monoprice.com for the 360 and PS3. If the 360 is older and doesn't have HDMI output, grab a VGA cable for your 360 (which is also available at monoprice for under $10). You'll be able to output 1360 x 768 over the VGA cable, which is extremely close to the native resolution of this TV. You'll lose 3 pixels per side, but what you'll gain is less color bleed (almost none) and overall a much better picture than the component cables will give you. Turn on VGA Expanded in the system blade of the 360 and you'll get even better blacks.
So in the end you'll have:
360 -> VGA or HDMI
PS3 -> HDMI
Wii -> Component
You want the best you can do with