Looking for a good 32in LCD for under $400

Hey guys, I've recently been looking around for good deals on 32in LCDs at the stores around me, and online. I'm seeing some decent deals, but I'm not sure if I need to spend the full $400. Basically what I'm finding is that the 720p sets are closer to $300, and the 1080p sets are a lot closer to the $400 mark. Is it worth it to get the 1080p? And also, will I be fine playing Xbox with a 60hz set? I don't really even want to spend $400 unless absolutely necessary. I'm looking for a TV that is going to be good for playing Xbox and watching TV and movies on in a decent size bedroom. I cant go any bigger than 32" right now. I won't have an HD source for the cable tv so it's not going to make a huge difference in that area. Does anyone know of any good deals that are around right now, or will be coming in the near future? I don't need a ton of crazy features, just a good picture and good performance. Any help is appreciated.