Well, it depends, where is it going to be? If its in your room, the smaller one will be best. Because you'll most likely be closer to the screen. If its in the living room, the bigger one will be best, because when your farther away, you dont need to see all the small details.
Depends on how far away you're going to be looking at it. The HDTV buying guides state that at 42" and smaller if you're more than 6 feet away it's hard to tell the difference between 720p and 1080p. If you have a larger tv then 1080p all the way.
37". Then if you want a better tv with top specs in a few or lot of years time then get something new. Its not like xbox 360 or ps3 output at 1080p anyway and its hard to see the difference in quality on blueray movies at that size. The only reason you'd probably want 1080p for that size is if you won't to use your computer through it
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