LGs are good on a budget as are Samsung, but for £600 you could probably get a good Panasonic or Sony at 32". I myself got a Panasonic 32TXLD70 something this weekend for £600. highly recommended. if it had not been that would have been a Sony 32S3000.
Connections wise I guess most decent sets should give you 2xhdmi 1xvga 1xcomponent, 2xscart. That covers you for future and present stuff I think. response times are very misleading so you really are best using or seeing one in a shop. Independent shops will let you hook up equipment if you ask nicely etc. 100HZ helps for SD content. Sky will look poor to be honest, but you expect that with LCD unless you have a very good picture processor and/or 100hz. Definitely do not buy over the internet in case there is a problem and you have to waste time posting stuff faffing around. A lot of high street shops are giving 5 year warranties at the moment as well. Buyiong online to save a few pennies is a false economy for things like TVs imo.
It's a hard question to answer as everyone will favour their own set. I previously had a Sharp Aquos and would swear by them but then it broke, then I cried, then I bought the new Panasonic. 'twas a sad tale....
rp2000