HD TV + PS3 Question

Alright well here's the deal. I'm buying a PS3 + TV next weekend in celebration of little big planet. The game looks amazing so I want a good looking TV to go along with it. I checked out a lot of TV's today with my Dad and I have a question to ask. I'm getting a 37" LCD TV, for Gaming only, is there much difference between a 720p and a 1080p? If there isn't then it would save me a ton of money, about $400 actually between the 37" Sharp 1080p ($999.99) Full HD and the Sharp 37" 720p 2 HDMI ($599.99)

So how much of a difference is there in gaming on a PS3 between a 720p and a 1080p 37" LCD TV and is it worth the extra $400 to go full HD?

nexusprime is right. Here's my quick story.

I have a 20" LCD that goes up to 1080p; used my 360 on it, looked great. didn't have HDMI so my ps3 still showed at only 1080i through component.

Also, have a 32" LCD that goes up to 1080i, most game either show at 720p or 1080p so I was force the play at 720p on both systems. Not that big of a difference from the seeing the 1080p on the 360 on the 20" . Couldn't compare it on the PS3 though.

This weekend I just bought a 50" Plasma 1080p Full HD TV. At 50" I looked at the SOCOM Beta on Friday in 720p and then in 1080p. Yes, HUGE difference to me. Much sharper image and richer color.

So overall, if you're staying under 40" then, you should be fine with 720p. If you want the best go with the 1080p for only this reason: the blu-ray player. You can only get the most out of what blu-ray can do if you plug it in via HDMI and have a 1080p compatible tv. If you won't be big on watching Blu-rays then don't worry about it at all.