Welcome to Audioholics!
As far as the cables go, I don't blame ya! I don't understand all of it either, but I found out what NOT to look for (aka snake oil) and that helps immensely. I'm going out on a limb here and assuming you like in the U.K.
and that makes it hard to recommend vendors, since I only know of ones in the U.S. BlueJeansCables won product of the year at Audioholics last year for their component cables. It seems a large majority of audioholics readers get their interconnects there, so it is highly recommended. Don't know what their prices will look like once they have to be shipped cross-continents though, so you might want to look for something closer to home. This is mostly an opinion, but it seems like buying a retailers own-brand cables (like radioshack gold) will usually be a good purchase if there are no online vendors that can ship out to you.
As far as the TV goes, only you can decide if it is worth the price you paid or not. LCD, DLP, Plasma, etc, they all have their strengths and weaknesses, so it usually comes down to personal preference and price.
The strengths HDMI are basically as follows: Ability to transfer audio and video over 1 cable. Keeps signals in digital form until it is processed by the TV (1 less analog/digital switch). Higher Bandwidth over component means it is better suited for 1080p when it arrives (although firewire may be coming on strong)......
On second thought, here's a website that explains it better than I can (or at least I hope so).
HDMI
Good Luck!