They're two different display technologies. LCDs are generally cheaper, but that also comes with, in my opinion, decreased image quality. LCDs use liquid crystals and a backlight to display the image, while plasmas use, well, plasma. Read up on Wikipedia if you want more technical info. The point is, Plasma TVs have much better black levels than LCDs, as well as more even lighting. The downside is that they consume more energy and give off more heat. As for pricing, you can find some high quality Panasonic units that won't break the bank (plasma, that is).
What about the rest of your home theater? Remember, good sound is part of the equation, too!