Dont listen to these guys. The number of games on the 360 that are native 1080p can be counted on one hand if that. Almost all of the huge franchise like Gears of War, Forza, Halo, CoD, Madden and others all run at or BELOW 720p. Just because you have a HDTV capable of 1080p resolutions doesn't give you the ability to alter the games native, pre-programmed visual quality. All a 1080p HDTV will do to a 720p image is upscale it, but it is still not a TRUE 1080p image. Also, unless you are playing on a screen of 46" or higher, the difference between 720p and 1080p is negligible!
Now that being said, if this is going to strictly be a gaming TV, then 720p is plenty and will save you $150 or more. However, if you have plans to watch BluRay movies or potentially run a high end PC through your HDTV then the extra $$$ on a 1080p set would be a wise investment.
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