720P or 1080 HDTV for PC movies?

[hugepl]

I have been doing massive amounts of research before I buy a new flat screen HDTV. I am looking into a 42inch LCD or Plasma.

I have no problem getting a 720P but 90% of my movie watching is directly from my hard drive (these are ripped DVDs in avi format ~ 800MB each)

I need to know whether I should spend the extra money to get a 1080P TV or if 720P will give me quality that is just as good.

These movies look excellent when ran on my laptop with a 1280x1024 resolution.

Any suggestions? Experiences?

Thanks!