I agree that from 10' away viewing distance 50" is the way to go. I would check for sales on the pz series of 50" plasmas as those are the 1080p models and some of them have gotten very low priced lately making room for the next models that should be coming in the next month or so.
In May 2008 I got a special deal on the 50pz80u for only $1300.00, but I think you could get that model for around $1500.00 now if you look and be patient.
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Denon AVR-887
Klipsch RP-5 Pwred Towers (mains) (525 watts peak each 12"Subs)
All Klipsch RC-25(ctr),(2)SS1(surr),(2)SS1(rearSurr)
Toshiba (2)HD-A20,PS3,BD35
For SACD/DVD-A Samsung HD-841
Panny 50pz80u plasma SETTINGS
RCA HD50LPW162 50"DLP w/HD2+
SA 3250HD
47" LCD+Yamaha5790+HD-A1(bedroom)
Harmony 680 + (2) 670s (amazing remote/support)
Game room with Onkyo receiver & B&W Speakers
The_Cable_Game
Take the high ground and be happier 
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