Get a HDTV widescreen tube set, granted they are only 34" to 38" big but you oughta see the picture when you hook up a progressive scan dvd player. As for playing video games on it they fill the widescreen. Playstation 2 actually has the option of choosing to play on a 4:3 set or widescreen.
I can't wait to play new Gamecube Biohazard game in widescreen with 800 lines of resolution and via component input and hopefully the game with have progressive scan as the gamecube outputs progressive scan on certain titles. My NEO GEO looks pretty cool on it too although not as good as the newer systems.
Forget about LCD, plasma, projection tvs. CRT are still the best sets. The others are all about inches, mucho money, burn-in and besides they are usually huge. You need like a whole room just for the set.
There are HDTV sets by Phillips, Panasonic, Toshiba, RCA, Sony. So you have choices but I went with a Panasonic 34" Tau pureflat. It has like four composite inputs, four s-video and two component.