So, I just bought a new TV and got a few questions..

It's a 720p 50" plasma screen. I was curious if 1080p is noticeably better than 720p? Keep in mind that I bought this tv specifically for gaming,

I'll assume you are asking if 1080p is a better setting on your 360 and not if 1080p is better than 720p in terms of televisions. 720p is what you want your 360 set to because your TV has a native resolution of 720p.

I agree with the "if you have it already" train of thought

On the other hand if you want to return it and spend a bit more then 1080p would be a good idea so you're able to take advantage of everything possible in that resolution. If you're the kind of person that wants 1080p movies and some (few) of the games today offered in true 1080p then you might want to return it and get a new set

If you're happy with it then enjoy it

Just remember that buying a TV is an investment that you're going to use for a few years so take a look at the entertainment landscape and plan ahead for what you think you'll be using

For gaming no, because the xbox only supports HD resolution up to 720p for movies, it depends. Most new movies look a lot better but unless the up-res was good on an older movie it could look just as good as a dvd (720p)Ninjabrocly

sounds like you're still wrestling with the decision...to save a few bones or go for the native 1080 set...just enjoy your purchase. 1080p native sets really only pay dividends when you get into sets in excess of 50 inches. 50 and downwards he difference is negligible. Best thing you can do is research on some of the high end av enthusiast sites what optimal settings are for your picture as right out of the box it will be 'hot' and set up to look good under the fluorescent blaze of big box stores.BonoBoy

Really anything 40 inches and over shows glaring differences in true 1080p and 720p resolutions from the correct viewing distances

Most games on the 360 are native in 720 anyway. Being up-scaled to 1080p does not necessarily mean the game is in real 1080p. So in the end, 9 times out of 10 you are not going to really notice a difference, and you are just going to drive yourself crazy trying to figure what you should have bought. As long as your contrast ratio is good, you're perfectly fine.