32inch LCD TV for playing PS3?

I have found some 32inch Tvs with 1080p Full HD ,the price is around 500pounds, but the 720p model is cheaper.
Just wanna ask is it better to buy a 1080p one for playing PS3(not for Blue Ray) or just 720p is enough?
Because someone told me if the 1080p TV is below 40inch, the effect is not really good.
Please give me some suggestions,or some particular model of the TV.
 
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