AS far as the TV, I'm in the same boat. I;ve got a 27" Philips tube, and get decent picture, but I want widescreen and HD.
My suggestion, at least the TV I am getting as soon as I can, is the Sony 34" XBR. I worked in a Circuit CIty with it and saw it every day, and I can easily say that when set up correctly, is about the finest picture you'll ever seel
Good luck.
Jon