Which is better - 720p or 1080p video modes?

I know that you are very much concern with the video modes. Of course, 1080p is definitely better than 720p. You should know that most current 720p models can display 1080i which will look good on a 32" TV that you want to buy. However, if you're going 46" and up, then 1080p is a must. In short, if you want to maximize the 1080p, the size of your TV should be 46" and above.

Well, part of that will depend on what you wish to use it for. Do you plan on just using it for TV? Connecting to a computer? Playing video games?

Most TV shows aren't broadcasted in HD and frequently when they are it's only 720p. I find that once you get into something, you wont notice a huge difference between 720p and 1080p. That being said though, if price isn't a big issue and/or there isn't a big difference between the prices, I would recommend going for the 1080p, simply because it's higher quality and wont go obsolete as quickly.

If price is a big factor however, go with the 720p; there is a difference, but it can be pretty negligible considering the price difference.

At 32" it isn't going to make much difference.  1080p is great but at that small a screen it is hard to see the improvement.  On bigger tvs go 1080p all the way but on something that size save your money.