I was also debating the flat or not TV questions for my last purchase. I didn't want to spend too much since this TV was primarily for video games so my kids don't tie up the main TV when it's time for important things like car racing ...errr I mean news. A few months ago, I bought a 32" Sharp at Best Buys for under $350 and I'm very happy with it. If you look at the "not flat" TV's you'll notice that some screens are more curved than others. Sharp is not flat, but not as curved as most. We do have a flat screen in the den and I tend to like the picture on a flat screen better but the Sharp is close and pretty darn good.
Also, keep in mind that how big the picture looks is not all in the screen size. How far your eyes are from the screen while viewing is significant. For example, in my den the couch where most of us sit while watching is less than 8 feet from the screen. So watching a 32" screen from 8 feet gives you the same picture size as watching a 48" from 12 feet. Move your TV as close to the viewing seat as you can, maybe on a portable stand w/wheels so you can roll it out of the way when needed.
I suggest getting a decent reasonably priced TV you can afford now with the idea that in a few years when flat screen and HDTV is more reasonable, you can use this one as a second TV and buy a new one for your main viewing.
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