Need suggestions for purchasing HDTVs

Need suggestions for purchasing a 32 inch HDTV, 1080p or 720p ?

Im gonna be purchasing 2x32 inch HDTV sets for my house by the next month. I have been browsing the forums & have also been looking at some tech sites for suggestions on what make & specifications I should be looking at. I have arrived that a budget of Rs 35k per Tv should be fine .

Usage :

1. I shall be using the TV sets for very light gaming on the PS3 & Xbox 360 (3/5 times a month)

2. Watching Blue Ray movies, BD-Rips & my old collections of DVD Rips via XBMC extended to the HDTV

3. Watching regular cable TV watching through a Digital set top box.

My main gripe is that whether i should go for a Full HD TV or should i stick to a 720p HDTV . This is so because im worried that the Digital Cable transmission may not look very nice on a Full HD Television & may even appear pixelated. Also will the regular DVD rips look decent on the Full HD Television or am I better of with a 720p television ?

Also please advise me on which models to go for (standing at my budget of Rs 35-36k).
 
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