Dee, I just bought an HDTV-ready LCD tv/monitor by Samsung this summer.
What you buy really depends on how much money you want to spend, how big or small the screen, whether you have cable/dish reception and whether HDTV programming is available. I was told, yes, they are going to all HD programming (2008? 2009? 2010?) but you can get an HDTV box when the time comes if you don't want to go that expensive now. Also, the cable company said the same thing. Right now, digital and HDTV are extra cost for my basic cable and the cable co. said that they would offer HDTV programming with a converter box. So I just went with HDTV Ready. The HDTV tuner would have cost more. Right now, most of the local stations have already converted to HD, but not all the cable stations are truly HD and you have to subscribe to HD to get the HD reception. In other words, just having an HDTV doesn't mean you are really seeing all HDTV programming.
As to LCD and plasma....my son voted for LCD, but said to get the extended warranty. Both are flat-screen and really thin. LCD has been the preferred choice for computer monitors, so they have probably improved/been proven the most. And, there are "thin" or "flat screened" tvs that are not LCD or plasma. thoroughly confused yet???
I made sure to check where all the input/output/earphones, etc are located. Really makes a difference when you are setting it up to have those in convenient places. Then, there are the speakers. Built-in? Will you be using a "theater" set-up, with external speakers?
Last, but not least to me. Will you be using you new tv as a computer monitor? Some of these new systems can all be tied together but not all new tvs are plug'nplay ready to be monitors.
So, my advice. Decide how much money you want to spend. And will you be able to buy a newer tv in the next year or two? Prices are constantly coming down. Will you be using the set as a monitor? What kinds of hookups are you already using and what do you forsee using in the near future? (count the dvd, the playstation/xbox/etc., as well as the home theater stuff) And how big a screen do you want/have room for? I really couldn't stand having a huge tv taking up all my wall space in my tiny apartment.
One last thought. Check and see how long the company has been around. There are lots of new ones that might not be around next year. A little research will tell you the leaders. (that's why i bought samsung and not westinghouse. samsung makes the stuff they used for the westinghouse. i just cut out the middle man. lol)
and as any hitchhiker will tell you, DON'T PANIC!