Most 32" lcd TVs are 720p. There are exceptions. I love my 1080p TVs, but my 32" Vizio lcd has a pretty damn good picture. I think you'll be happy with 720 or 1080. If you don't already, I do highly recommend having an HD package from your satellite or cable provider. If you're going to have a nice HDTV, you should enjoy its full capabilities. Yes, HD is an enormous improvement. (IMO-Directv is also an enormous improvement over cable)