Replying to Hdtv advice

im looking into buying a tv (to be used mainly for gaming, and tv) and was wondering if someone who is more knowledgable on the subject than i am can guide me in the right direction. I know the basics about the tv technologies and resolutions, but i do have a few questions... (I have a 360 so the gaming needs should be addressed to that) first, is 1080p really that much better when it comes to gaming? ive heard a few times that most tvs automatically convert it to 1080i when running from an xbox... is that true? Im content with a 720p (seems to work better on shooters compared to 1080i, but pretty much the same in my eyes) so if its really not much better then that's fine. does pixel resolution numbers (like hd vs super hd/all the other names at like 1920x1080) make a big difference? I feel like im ranting so i guess most important is what do you think matters most when searching for this tv? if it helps, im looking for a smaller one (about 20-26 inch) that is reliable and capable to do what i need for a price as low as possible (~400-500 range). thanks guys, i know its a lot of shit but lets face it, this is ns and there are people on here that know the answers