Upgrade to a Flat-Panel TV
Your two main choices remain plasma and LCD (liquid crystal display). The debate over whether plasma or LCD is better has raged for years, and in my experience it still comes down to personal preference. The key, as always, is to shop around.
Generally, the pro-plasma people promise better blacks and larger dimensions. That pure black is necessary for a real "pop" to the colors and to minimize "streaking" with movement. Plasma has always offered that widescreen 16:9 display, akin to the shape of a movie screen, and they tend to provide a better viewing angle, which means you can see the screen at various places around your living room without losing any quality. But plasmas don't typically do as well in brightly lit conditions, and those "burn in" stories simply won't go away (when a static image is left for long periods on a plasma it COULD faintly remain on the screen, though I've never seen it happen).
LCD lovers prefer its overall color presentation and feel they last longer than their plasma cousins. Plus, plasmas start at 42 inches, which means if you just want something small or cheap, then LCD is the way to go. Plasmas don't start in the affordable range, and anything really inexpensive will look it. Certainly LCD is a tried and tested technology that has been around for a while (e.g. computer monitors), and that can mean finding quality bargains. LCDs also run cooler than plasma, thus eliminating the need for a potential fan, and they can be found in the 16:9 format.