I've had a 42" for about a month and I have to say I love it to death. I don't think I have encountered any 1080i sources to my knowledge, I pretty much watch discs or avi files exclusively, so I can't really comment on that.
But from my experience it is very, very pretty with very good black and stunning colors, once you get it all set up. It also has a very high level of color control, so you can tweak and tweak and tweak until it is just right.
My only complaint is that it doesn't separate the smoothing and dejudder controls, so the few times I've wanted to adjust that aspect, I can only do low, medium, high, or off. But it is almost always off anyway.
With the 2010 models coming out you can probably get one for a steal, mine was about $900 at Fry's a month ago.
I would be surprised if someone had a better tv in its price range, but I'm not exactly an expert. I did look at a ton of tvs, and currently am very happy with my purchase.
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