The choice of display is guided by the seating distance from the display and the amount of ambient light in the room. 

In a perfect world most home theatres would make use of the latest three element DLP projectors with huge contrast ratio and a screen providing great black levels.

Unfortunately front projection suffers badly at the hands of ambient light as any light falling on the screen effectively becomes 'noise' that raises the black levels to a point where you cant see the picture at all. 

In a room with average light control you might consider a Plasma screen - currently still the best quality for the money at 42" and above, and a better picture that LCD in terms of contrast ratio, lumens, resolution and refresh rate. 

Where ambient light levels are high and uncontrollable, LCD screens will be your best choice.  With highly absorptive plastic screens, LCD's will work well even in direct sunlight, however the trade off is in picture quality - especially noticable with fast motions of brown colours.

For the ultimate in flat panel displays, choose a LED TV.  All the benefits of LCD, thinner and beautiful pictires with fast response times rival all other display systems. 

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