I'm in pretty much the same boat. Here's what I've found out so far,
1) I'm looking in the 1000 - 1200 range for a 42" set and that pretty much limits me to the weekly specials of the "good" brands.
2) Check the Sunday sale flyers in the paper. There's gold in them thar hills.
3) Check out the big box stores. Also, don't discount some of the "local" brown/white goods retailers. Here in Joisey, we've got "Electronics-Expo", "6th Ave" and "P.C. Richards" and more, all of which have weekly loss-leders. Some of which also sell on line. I know the first two do.
4) If you're going purely satellite or cable, skip this one. But, if you want to avaiil yourself of any local free "over the air" HD programs, make dang sure the set has a NTSC/ATSC/QAM tuner. You'll need this to get the new digital (and HD) broadcasts over the air. Again, if OTA digital/HD doesn't interest you, you open up more options within your price range.
More on #4. Here, we've had 7 VHF stations all my life. Now, they all offer HD broadcasts. When I hooked up my new Toshiba to the 30 uear old TV antenna on the roof and set it to scan, it brought in about 50 stations. A few were blurry, seven were digitital duplicates of the analog stations (capable of a HD signal) and a few were simply new digital stations I never knew existed. When I cleared out the drek, I still wound up with 30 crystal clear (even the non-HD ones) OTA stations! Yes, seven are digital HD duplicates of the main one, but that still leaves 16 new ones!