Ka-Ching!

Thanks to everyone digging in their couch for change last year I received a nice bonus at work. So I think it's time to get out of the 4x3 standard definition world and pick up a decent 16x9 1080p TV. What would you recommend I get to hook up to my XBox 360? Due to the size of the entertainment space I'm looking for something in the 40" range that would be mounted on the wall.

I've been told that Plasma isn't a good choice since I'll be using it for gaming. True? False? Thoughts about LCD or LED?

I'm also thinking about some 5.1 sound action and a Blu-Ray player to round out the upgrades if you have any suggestions for that too I'm listening.

Thanks!