Whats your budget, if 1000 dollars in all your allowed spend than its not a bad deal. Personally I didnt like the fact that in any projection TV, you will have to change the bulb in every 6 months to 2/3 years depending on the quality of the replacement bulb. If you buy a service plan for like 300 dollars on it, they will replace the bulbs for free, but my brother in law has a DLP and the color wheel broke, and he had a bulb break in 2 weeks. He had the circuit city protection plan, but it took them 1 whole month to get the thing repaired, which is a nightmare if you only have one TV.
Personally I love my samsung 46 inch 1080p LCD TV which you can buy online for about 2500, although I payed a little under 3000 because I bought from circuit city. I like that is supposed to last for 15 years and there is nothing I will need to replace. Lots of slots, TV looks awesome, I could gush on and on.
Bluray and HDDVD can play in 1080p, but all TV signals are broadcasted in 720p or 1080i. I think 1080i is superior to 720p in my opinion and therefore that would be another downside of this TV seeing how it only has a 720p resolution and would have to down convert the 1080i signal to 720p. Networks that broadcast in 1080i to name a few- CBS, NBC, Discovery HD, and Food Network HD.
Lastly check the stuff out in the back, does it work good for your setup? If you have a wii and xbox360, you are going to need at least two component inputs. My satellite TV and upconverting DVD player use HDMI, I have two slots so Im good, but some TV only have one HDMI input so thats another thing to consider. Also remember that while you may not have a HDDVD or bluray now you might have one in two or three years and need an extra slot. Im hoping the HDDVD / Bluray combo players will prosper and then I can buy one and that will replace my upconverting DVD player.