32inch LCD TV thats good for PS3

The PS3 is no different from any other video source that produces 1080p. Bigger is probably better, but if you are getting sticker shock, I would seriously consider whether you need a 1080p TV. Many sources I have read (and from my own experience) the difference between 1080p and 1080i is essentially imperceptible to the human eye, even with the perfectly crisp graphics of a video game. Indeed, it takes a lot more work for the TV to render a 1080p signal, so it could even be the case that the quality is worse (but this may not be based on any actual facts :-).

I would go for the Panasonic TC-32LX60 -- I have the smaller 26" version of last year's model of this line, and am very pleased with its performance and picture. Spend your extra money on a kick-butt surround sound setup :-)