After having a PS3 for nearly a year I think I'm ready to treat myself to an HDTV.
I initially decided to upgrade to a 37" Plasma Panasonic TH37PX70PED. I also needed a cabinet to go with it but after seeing how expensive 'official' cabinets seem to be these days I've decided to go with a 3rd-party model from Amazon instead.
One of the problems I have (albeit it's a nice problem to have) is that the cabinet can take up to a 42". So with this being the case I'm wondering whether it's worth paying a little bit extra for the 42" Plasma Panasonic TH42PX70PED instead.
Now you may be wondering why am I even debating this minor issue? Well the problem I have is whether buying a slightly bigger model will be lost on me by the fact that I play games only 3-4 feet away from the screen (due to the tight layout of my room). Will the picture quality look worse with a bigger model if I'm playing this close?
The other problem I have (and this one relates to my thread title) is that I still play my PS2, Xbox and Dreamcast. I've heard playing on an HDTV can make the games on these systems almost un-playable from a visual standpoint. How true is this? Can this not be fixed by reducing the HDTV's resolution down to 480?
Again, any help on these issues is greatly appreciated.

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