as for the plamsa v LCD debate
LCDs by nature tend to show up more of the noise in low quality SD broadcasts, like BBC1 on digital for example, the sort of stuff you watch everyday
so if you watch more normal TV, plasma would probably be better
the old debate about contrast ratios and blacks is now all but pointless as LCDs have caught up so much.
and for this money id be looking at the current best of 37 inch plasmas, the Panasonic 37inch PX60, can be had for £1200 on-line so well within budge
just about every review ive read of the above TV has placed it number one, its only when you get to 43inch, that you can find better in the pioneer, but they are expensive, starting at well over 2 grand.