If its a 32" TV, you won't see a difference between 720p and 1080p. Its too small and the picture is too compressed to notice any sort of difference. I work in an electronics store and we don't even carry 1080p TVs under 37". As for the Direct TV, like I said, your picture is really compressed in a 32" so it wont look terrible, however HD channels would look much better. HD Satellite or Cable will only output a 720p signal anyways, so even if you did get a 1080p tv, it would look exactly the same as a 720p.