HDTV shopping is teh depressing

I posted this at the home theater board as well, but I figured maybe some of the OGU crew could help me. This is pretty much a copy and paste of what I wrote there. I went to a few stores, and this is what I came up with,

"I was here a few months ago (actually, it's probably been a year by now), when I needed help with my 5.1 in my room. Now, I'll be getting an X360 soon, and this HDTV talk is getting me down. Right now, I have a 20" JVC flatscreen with composite hookups. It looks great on the Xbox and GC, but I come next week, this setup will be outdated. I'll have spent over $700 on the X360 after all is said and done, so my budget isn't that great. I'm looking for a 26"-30" tube HDTV for my room. Because of how close I am to the TV, I didn't want an LCD or Plasma, because of that 'blur' effect in fast moving games/movies. I heard that tube's don't have that problem. I also like having my center channel on top of the TV, so a flatscreen isn't that big of a must.

Right now, I'm checking out futureshop.ca and bestbuy.ca (I'm canadian). There's a 30" HDTV Toshiba I'm looking at, the guy I talked to at the store said he'd get it for me for $850. It has 1080i, 3D YC filter and progressive scan. Not too bad, exept one of the customer reviews had this,

"The only negative is that the HD component inputs only allow HD source, so if you have component DVD from your game console or DVD, it won't work on this TV."

What does that mean? Will it still work with the X360, or Xbox?

The only thing with this is, there's a 26" version availble for $599 at bestbuy. That's only four inches for $250....pretty big difference. However, I made the mistake last time of rushing into buying a tv, and I regretted only getting a 20" after all was said and done.

There's another 26" availble too, it's a Panasonic Flat Tube EDTV. It also has 1080i and 480p.

What do you guys recommend? I can't find any tv with 720p in this price range...is it much better at all compared to 1080i? Would this tv be good enough to last me atleast 3-4 years? I know 1080p is coming out soon, does that mean this tv will be out-dated by year's end? Are there any other tv's in this price range/category?

Thanks for any help/suggestions."

Thanks for any help/suggestions from you ladies aswell.