Flat screen tvs are like the computers of a few years ago in that it seems like every other week they get better and less expensive. If you keep playing the waiting game, though, you'll never buy anything. There will always be something coming out that's better and/or less expensive.
Most all the above is good advice, I think. Prices will come down in the next few weeks on many of the sets. If you like the LCDs, I was told that Sony will be offering a deal in a week or two. Some plasmas have already come down since CES. You will have to go look at the tvs and decide for yourself which you like the best. Beware, though that most places have their displays in "torch" mode to make them look good.
I personally like the plasmas better, but again, it's subjective. If you have a lot of windows and view a lot during the daytime, then you may want to look at LCD b/c of the less reflective screen. If you view mostly at night or have a fair amount of light control, then it's' a mute point.
As for 1080 vs 720, that depends on many things. If you don't plan on upgrading within (IMO) a very few years, then I would
somewhat future proof yourself and buy a 1080p unit as you will benefit if you buy a high def DVD player. You will notice a difference in 1080p if you buy a 50" or larger screen with your viewing distance IMO, also.
"Clay" faces refers to the fact that some displays (usually plasma in my observations) will not have natural looking flesh tones, especially in the face. They have a "clay" look. Think Silly Putty. Black levels are generally better on the plasmas as well. The new Sony XBR3 and best model (can't remember the model #) Sharps have much improved black levels.
Also note that the refresh rates are better on plasmas, so if you watch a lot of fast moving sports, they generally look better. LCDs tend to have more motion blurring. It's much better than before, but still not usually as good as plasma.
Lastly, if you are reasonably careful with your plasma, burn in is not really an issue.
Best of luck in your new purchase and welcome to the forum
