Best LCD TV/Monitor for gaming 24"-32"

If you're a competitive twitch gamer, or just someone who can't abide perceptible input lag, then you should perhaps order a TN-panel monitor. If general picture quality (especially viewing angles, colour fidelity) is important to you, then you may need to get an IPS-panel display. These are expensive (Apple 24-inch costs $900, NEC costs $1200, though there is the HP LP2475w for a little more than $500 these days -- the HP has HDMI and DisplayPort input). Panasonic 32-inch IPS Alpha TVs cost less than $1000.

Most HDTVs are PVA or MVA panels. This LCD technology tends to suffer the most input lag, though it of course varies depending on exact model.

I strongly recommend XTKnight's monitor thread on AnandTech. It contains brief summaries of the main criteria for LCD monitors as well as a fairly up-to-date list of recommended displays.