Hi Mate, Lots of advise here...
I spent alot on the TV and purchased a KURO 42inch for £1299 with a five year warranty from TLC who offered me fantastic time on the phone and advise.
Im MORE than happy with the KURO and after looking through reviews for about three months it seemed easily the best option for picture quality on most of my viewing even though its 1080i and not 1080p - Dont be confused thinking you need 1080p or FULL HD - This TV STILL has a better picture!
For a sound system I went for the SONY DAV-IS10 which has TINY speakers, massive sound and looks great - Was about £600 but online its £350 at the moment and a real bargain - Also has a built in DVD player which upscales the quality of your DVDs and is fantastic.
Finally I wanted BLU RAY so opted for the PS3 for this with a decent lead (QED HDMI lead made for PS3!) and Im really pleased with the quality - I also bought the proper remote so I dont have to fiddle with the game controller! - My PS3 was second hand from ebay and cost about £300 with loads of BLU RAY films!
Lastly I just ordered SKY HD which has just gone down to £150 and you can get a good deal if you haggle with SKY!
This is all within budget and I think the best I could have gone for - ALL of my friends bought cheaper TVs or fell into the FULL HD bracket and they know my picture blows their systems away - That really pleases me! HE HE!
JAMIE