I am looking for a 42 inch hdtv, 1080p with atsc tuner. The price preference is under $1000. If it is worth, I can go upto $1200. Please advise.

Check out the LCD thread. 42" are not rear projection.

Well, there are a couple. If you can find one, last year's Sony 42E2000 is decent and you should be able to get it for under $1000.

I'm thought Sony's is going to have a 42" version of the E3000 (the E3000 replaces the E2000 series) for this year, but I don't see one listed yet, the smallest is 46" so far.

Like others have said you are pretty much confined to LCD from what you are specifying. You aren't going to get a well known brand like Sony Sharp or Samsung even at your upper limit of $1200 (maybe refurbs). However you can find a Westinghouse TX-42F430S from Crutchfield at $1199 (Free shipping). I have the 42W2 (HDTV Monitor - no Tuner) and I love it aside from the two stuck pixels. Remember with any LCD based TV you do have the risk of having some dead or stuck pixels. Also Westinghouse customer service is pretty nonexistent.