So I followed the advice of Charlie2688 and rather than spend a whole load of money on a HDTV which wouldn't get fully utilised, I went with a HD monitor. BenQ FP241W, 24 inch widescreen, 1080p output with HDMI input. It's pretty sweet and the games looks absolutely amazing. I thought they looked improved on the normal tv but the improvement is just unbelievable. Really glad.
Ridge Racer has been getting the most play at the moment and it's a lot of fun. Just starting to get difficult as I'm being really challenged for the first time at about 70% completion. Played a little Call of Duty earlier which looks cool enough but I think Resistance is a better game. Just seems to be a little more different than the usual World War shooters.