I ended up buying a Panasonic TH-42PX60 (42inch) a year or two back. When I looked at the TV, it said that it was 1080i compatible. I didn't know much about HD back then, so I jumped on it. Now that I've done some research, I have found that the TV cannot display a 1080i signal, but can only receive it. So, my TV can only display 480 or 720.
As well, when I bought the TV they gave me a free Panasonic DVD-52S which is capable of upscaling SD DVD's.
Now, I'm looking at getting a PS3 for a Blu Ray player and was wondering if I'll see much, if any, of a difference then my current setup?