Yes indeed your budget is not good enough for a 1080p plasma tv, so you should decide between the 1080p and plasma, if you want to get a plasma you can have a look at the
SAMSUNG PN42A450 42 inch 720p Plasma HDTV, newegg has it for $900. And if you want to get a 1080p lcd you can have a look at the Toshiba 40RF350U 40" tv, a recent deal on the
Toshiba 40RF350U LCD TV is $1100.
I did not mean that the budget was not good enough for just a 1080p plasma, I meant that if buying anything at that price point, I would settle for a good 720p set instead of buying some off brand junk TV that happened to be 1080p. The reason being, picture quality is more than just resolution. For example, 1080p and 720p tell one nothing about color accuracy. It is better to have a high quality 720p set than a low quality 1080p set. This applies regardless of type of TV (LCD, plasma, or whatever).
And, as I said previously, I would never buy a plasma. But, of course, there are others who would never buy an LCD. One should read up on them both, and select according to which virtues and vices matter to whoever will be using the TV.