Just be careful not to go "too big." Those that are sitting 6-8 feet from the set may not be able to enjoy a 60" screen as those seated further back. For now, we've got a small 37" in our family room, and I'm usually sitting 12' back. It's plenty big for me, but may not be for others. Most of your local shops will have setups with couches or chairs you can try out. I love those giant DLP's, but every couch I've been in was way too close for my taste. I felt like I was sitting in the front row of a movie theater.
My uncle built a theater room in a dedicated portion of his basement. His projector and screen take up the entire wall - probably 10'. Even though I'm 15' back, the pic was way too big to enjoy football. I felt like I was turning my head the entire game watching a tennis match.
In your size room, I'd say you'd be ok with a 42" LCD. Any larger, and I'd go 50" Panny plasma if price is an issue. Stick to flat panel if you can.