Go to page 48 of the manual at this link:
http://service.us.panasonic.com/OPERMANPDF/TCL32S1.pdf
It talks about the possible computer resolutions.
I am thinking about this one too since it's on sale today... I was shopping for a 40-42" at around $650 - but this one has pretty much everything I'm after except for size... So I'm not sure... The 42" TC-L42U12 also reportedly has an IPS panel and it was selling for around the high $6xx low $7xx. It just seems like this is a high value to price set, which is always what I look for...
Also, the picture viewer is kind of important to me because that would be one of my main uses since getting back into (digital) photography. It looks like you cannot zoom in on pictures, which is kind of a bummer... (Not a problem if you're using a computer I guess.)
@beefjerk... I know what you mean about scaling - it's always a concern. Usually scaling DOWN from high res to low is not a problem - it's usually going from less information to more (low to high res) where things start to look soft... I don't know - scalers are getting really good. To me it's about viewing distance - if you're going to be back far enough to not notice the pixel size, then 720 should be fine - and it would match your native input. (However remember that blu-ray and maybe some PS3 games could be native 1080?)