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Also one thing to bear in mind is that just like the PS3 you can use a 360 as a media center, it also has DIVX/XVID support and with software like tversity you can transcode anything you like, it just lacks the hi-def drive. Although the 360's noise problem doesn't help!
As for TV's, I've recently bought Toshiba's and had no problems. Last one I bought was the 42X3030, which is great, but may be a little large for you! There's a few threads in the techie forum on this.
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Cuius testiculos habes, habeas cardia et cerebellum.
When you have their full attention in your grip, their hearts and minds will follow.
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