NOTE: This issue with response time for LCDs is specific to LCD flat panel displays. The kind that you hang on the wall and look very similar to plasma flat panel displays.
Rear projection technologies, including DLP, LCD, LCoS, HDILA, LCoS, etc. do not have the same response time issues that LCD flat panels have.
Refresh rate for most displays will be 59.94hz (60hz) which is NTSC standard, so that is completely different from response time. Since most video is delivered at 60 frames or half-frames (fields) per second, that is why a display needs to respond at 60hz - to show those 60 frames.
Now, if you are specifically looking for flat panel displays, you are basically limited to LCD flat panels and plasma flat panels. Both of which have their advantages and disadvantages. Most notably, LCD tends to look worse and worse off-axis and has been known to look just a tiny bit worse overall for image quality and has the blurring issue. Yes, it most DEFINITELY tends to still have a blurring or ghosting issue.
But, LCD does not have burn-in and often produces a brighter image. Power consumption for LCD vs. plasma is almost identical.
You also can typically find larger plasmas (50"+) for less money than a coresponding LCD panel. So, for me, needing a 50" size in my family room, LCD tends to be a bit more money. That is becoming less and less of a reality though as LCDs are coming in line with plasma.
Right now, at the 42" size... I would strongly consider an LCD display - especially if I was to be playing some video games on it.