My roommate in college had this set up on a 32" toshiba.
It was a kind of all-in-one for a Mac Mini, PS3 and TV watching.
1080 is great for the computer resolution, but for TV/games, from what I read, you can't tell the difference between 720 and 1080 until you hit 42".
But you can't always trust what you read.... Either way, enjoy, I think you're gonna dig it.